If you’re adding an extra room or improving your home in some way, you will likely need to update your homeowners insurance policy so that the new addition or improvements will be covered. You should do this before you start any work, because if you don’t and the new addition or improvement is damaged or destroyed while being built, you may have to pay for the loss.

It’s always advisable to contact your insurance agent before construction begins to increase your coverage to reflect the new changes in your home.

Make sure contractors and subcontractors carry the proper insurance coverage

When you have contractors and subcontractors on your property to do work on your house, you run the risk of one of them being injured on the job and suing you. You need to do two things to adequately protect yourself from this potential liability:

  • Make sure that all contractors and subcontractors carry adequate workers’ compensation coverage. Don’t be bashful. Demand to see a copy of their policies beforework begins.
  • If the workers’ compensation coverage is not adequate, you may need to extend the limits of the liability portion of your homeowners policy or find a contractor whose policy limits are acceptable.