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Give Us a Call Before You Buy, Build or Remodel
Spring starts the season of home buying, building and remodeling. If you are planning a change of address, or a change to your existing address, make sure to call us so that we can make sure your insurance reflects the change.
If you are selling an existing home and buying a new one, let us know as early as possible in the process. Once you have decided on a new home, we can help you find the appropriate insurance coverage. We also can make sure that you drop the insurance on your old home and start the new policy once you have closed. We work closely with you to make sure that you don’t pay for coverage you no longer need or lack coverage that you do need.
Also let us know if you are doing any remodeling. The insurance company will need to assess whether any policy changes are necessary to insure the home during renovations.
Depending on the scope of your plans, you may need builders risk coverage, which provides coverage during the building or renovation process. The insurer usually requires that you meet certain conditions in order to get the coverage. For example, you probably will have to show proof that the contractor has coverage and that you are named as an insured on that coverage. You also might need to take risk-prevention steps such as posting no-smoking signs and ensuring that there are plenty of fire extinguishers and workers know how to use them. Each company has its own set of conditions.
Why do you need builders risk coverage if the contractor has coverage? The policies cover different things. The contractor’s policy covers only losses that are the contractor’s fault. For example, if an employee of the contractor ignores the no-smoking signs and starts a fire that damages the home, that is covered by the contractor’s insurance. If the contractor’s employee backs a truck into the house, that is covered by the contractor’s insurance.
But the contractor’s policy does not cover other things, such as damage caused by someone who breaks into your unoccupied house after the workers have left. It does not cover damage caused by storms, or other losses that are not the fault of the contractor. Your builders risk policy provides coverage for covered losses 24/7.
Builders risk coverage must be underwritten, and it can be harder to get and more expensive than regular homeowner’s coverage. That’s because statistically, homes that are being renovated or built are more likely to incur claims, largely because they are not occupied. It is very important that you let us know in plenty of time before you begin a build or renovation project so that we have ample time to place coverage that works for you. And once your project is complete, let us know so that we can help you drop your builders risk policy and revert to your normal homeowner’s coverage.
At The Bensman Group, we are happy to help you with any insurance or wealth management need. You can contact us at 847-572-0822 or email@example.com.