Tips For Home Renovations Home renovations can be a time-consuming and complicated process. There is a saying in renovations: It always takes twice as long and costs twice as much as initially quoted by the contractor. This could be due to changing the scope of your renovation during the process, uncovering unforeseen issues behind the walls like structural damage or electrical wiring that isn’t up to code or perhaps your contractor inadequately estimating the project timeline and costs upfront. These tips can help you protect your investment and feel more secure during the renovation process. Before Renovations Begin Consult with your insurance agent before you begin renovations of your home. Your policy includes a clause that requires you to notify your carrier if the renovation increases the value of your home by more than five percent or $500,000. Your agent can also recommend additional ways to make sure your home and valuables are properly protected throughout the renovation. Your agent can work with your insurance carrier to determine the post-renovation replacement cost on your home. This review addresses cost increases in construction materials, labor, changes in building codes, installation of any home safety loss prevention devices, change in square footage, identification of new custom features or additional premium credits for which you may now qualify. Safety and Burglary Prevention During Renovation • Maintain a secure environment. If your contractor has to disable your home’s fire alarm by covering smoke detectors with dust covers, experts recommend that these devices be temporarily replaced with heat detectors. Heat detectors are normally placed in garages, kitchens and mechanical rooms and are not activated due to high levels of dust in the air. This is also a good time to consider upgrading your alarm system to include low temperature monitoring and installing a water shut off device, or sump pump.
• Keep a clearly marked and readily available fire extinguisher on every level of the home during and after the renovations. • Control debris and other potentially dangerous materials. Be sure construction materials and debris are stored and disposed of properly. Dumpsters should be located well away from your home and emptied on a regular basis. Demolition debris, sawdust and litter should be removed at the end of each day, leaving your home in broom-clean condition. Your contractor should store any toxic or explosive materials appropriately and away from potential ignition sources, children and pets. Fireproof cabinets are required for the storage of all flammable liquids to meet NFPA and OSHA standards. Prohibit smoking on the job site, as 5% of job site fires begin with the careless disposal of smoking materials.¹ • Protect your valuables. If you move away while your home is undergoing a renovation project, consider storing all valuables, including fine art and jewelry, in a secure, offsite storage facility. Consult with your agent prior to removing any valuables to ensure they are covered while offsite. Your agent may also have recommendations on secure storage facilities.
Sources: [1] nfpa.org/news-and-research/fire-statistics-and-reports/fire-statistics/fires-by-property-type/structures-under- construction/fires-in-structures-under-construction-undergoing-major-renovation-or-being-demolished[1] nfpa.org/
Click here to read the full article from our carrier partner Nationwide Private Client. If you have questions about your post-renovation replacement costs, request a time to chat with our team here.
Personal Finance Quarterly | Spring 2022
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