Without a proper risk insurance policy, homeowners could be left responsible for hundreds of thousands of dollars worth of damages.
Online PR News – 29-September-2009 – – Renovations and additions are a big decision for any homeowner. It requires the finances as well as time and energy necessary in overseeing the project. Oftentimes builder’s risk insurance gets overlooked because of this but it is a crucial aspect of any home improvement operation, according to an article recently published on InsuranceAgents.com.
“This policy is specifically designed to protect homeowners against all damages endured in the process of renovating,” states the article titled, ‘Builder’s Risk Insurance: Extreme Home Makeover.’ “Although they are more expensive policies than standard homeowners insurance, builder’s risk insurance is well worth the investment if disaster should strike.
Unfortunately, most standard homeowners insurance policies do not cover damage caused by a contractor performing a renovation, add-on, or any other type of home improvement. But mistakes can happen and damage sustained to a home while in the renovation process can run a homeowner into the tens of thousands of dollars.
But how much does a builder’s risk insurance policy? Well, that depends on the size and scope of the project, the cost of materials being used to complete the project, and the estimated value of the home following completion of the project. All of these estimates go into formulating a builder’s risk insurance quote.
All homeowners considering a home improvement should consult their home insurance agent before hiring a contractor. The builder’s risk insurance policy should be purchased before construction begins. Visit InsuranceAgents.com today to learn more about builder’s risk insurance and how to lower home insurance quotes.
Staff contribution: Kyle Fitzsimmons