Insuring your home remodeling project

Planning a home remodeling or renovation project can be exciting and nerve-wracking at the same time. There's so much to do: arrange the financing, select the contractor and make endless decorating decisions.

One task that might not be on your list, however, is contacting your insurance agent. Chances are good the coverage limits on your current Allied Homeowners Insurance policy could also be in need of some renovation. Here's why.

Protect your home – before the project starts

Don't wait until the work is completed to call your agent and increase coverage on the structure of your home. If your new addition were to be damaged or destroyed before you boosted your limits, you could end up paying for repairing or rebuilding the damaged area.

Avoid liability

Before you hire a general contractor to complete your home remodeling, ask to see a copy of their workers' compensation policy. If they have no insurance or insufficient coverage, their workers or subcontractors injured on the job could end up suing you for medical or rehabilitation expenses. In that situation, you may need to increase the liability coverage limits of your Allied homeowners insurance policy.

Other insurance considerations

Make sure your contractor carries general liability insurance. This insurance covers negligence or omissions that could damage your property or injure people. Another coverage your contractor should have is builder's risk. This insurance covers damage to your home and building supplies, including materials not yet installed.

Be covered for replacement value

When the project is completed, the value of your home will most likely be higher. At this point you should talk to your Allied independent agent to recalculate the replacement value of the home and adjust your coverage accordingly. You may also need to increase the amount of coverage for your personal possessions if you've purchased new items, like furniture or electronic equipment, as part of the home remodeling.

Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Allied-affiliated underwriting companies, which are controlling. Such products, coverage, terms, and discounts may vary by state and exclusions may apply.