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Home remodeling:
are you adequately insured?
SEATTLE - Summer is a perfect time for
home remodeling projects. Building an office, bedroom or an extra
bay in your garage are all great ways of modifying your home to
suit your growing personal needs.
As you add to your home, however, talk
with your insurance agent or company to make sure you are still
adequately insured so you're fully protected against a covered
loss. Depending on the addition or improvement, you may need to
increase your level of coverage.
"Some homeowners may be tempted to save
five or ten dollars a month by not informing their insurance companies
about changes they've made," said Karl Newman, NW Insurance Council
president. "That approach can have severe financial consequences
if you have a large fire or other major loss. You could find yourself
on the hook for tens of thousands of dollars - all to save a few
dollars in the short run."
NW Insurance Council and the Insurance
Information Institute offer the following tips to help you adequately
insure your remodeled home so you can avoid one of the common
pitfalls of home improvement projects:
- If you've recently remodeled your home or built an addition,
contact your agent or company immediately to determine if
you need to increase or change your coverage.
- If you're planning a remodeling project, contact your agent
or company before construction begins. If your new addition
is damaged or destroyed before the new coverage starts, you
may be responsible for the repairs and rebuilding costs.
- If you're hiring a contractor, make sure the company has
Workers Compensation. Ask for a copy of the policy. Workers
Compensation covers medical expenses and lost wages if workers
suffer injuries on the job. They could sue you if the contractor
doesn't have the proper insurance.
- Make sure the contractor is properly insured, bonded and
registered through the Department of Labor & Industries. Ask
the contractor to show you copies of the bond. You also can
check if the contractor has any complaints filed against it
by looking online at http://www.lni.wa.gov/.
- Check references to verify the quality of the contractor's
work. To find a reputable contractor, check with your local
homebuilders association.
- If you buy additional items such as furniture, exercise
equipment and electronics, you may need to increase your coverage
for personal possessions. Talk with your insurance agent or
company. Keep the receipts, take pictures of the new items
and keep them with your home inventory. For free downloadable
Home Inventory Software, visit www.nwinsurance.org/cm_disa.htm.
For more information about insuring your
newly remodeled home, contact NW Insurance Council, visit www.nwinsurance.org
or call (800) 664-4942.
NW Insurance Council is a nonprofit,
public education organization funded by member insurance companies
serving Washington, Oregon and Idaho
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