INDUSTRY INSIGHT
INSURANCE
SPONSORED CONTENT
MAKING
RENOVATIONS?
Insurance Coverage Concerns
You May Not Know About
W
ith spring just around the corner, many of us are thinking about
doing some home improvement or remodeling, However few
consider how important it is to make sure they have the right
amount and type of insurance coverage during the project and after. Here are
the basics to keep yourself protected whether it’s a DIY job or one being done
by a hired contractor.
Before starting any major projects at your home consult your home
insurance agent first.
Based on what you are doing, your agent can advise you on what you may
need to update your policy and if you need any additional coverage during the
project. If you are going to do the work yourself with help from friends, be aware
of your liability in case one of them is injured. You may want to discuss raising the
medical protection on your policy that will directly pay for injuries sustained by
friends working on your property. That way injuries can be paid for immediately
and can reduce the risk of you being sued.
If you are taking on a large project by yourself that will involve a good bit of
new construction on the home, you may need a builder’s risk policy, which would
be a separate policy or in the case of some homeowner’s policies, coverage
can be added to the policy as an endorsement. This type of coverage will take
into account the additional risks of construction including purchased building
materials that may be stolen. It is extremely important to discuss with your agent
what your homeowner’s will and will not cover and what coverage may need to be
added when you take on new construction by yourself.
Having a contractor do the work? Make sure they are properly insured.
If you are having a professional come in to do the work don’t assume that your
insurance responsibilities end there. Your home is your most important possession
and if anyone is going to be working on it they need to have the coverage to take
care of damage from a job gone wrong. It is very important to verify that anyone
working on your home be properly insured and to not just take their word for it.
Ask your contractor to have his or her agent send you a certificate of insurance for
their company, and be sure it comes directly from the agent. The certificate will
show you the types and amounts of liability coverage they currently have. What
you want to see is a general liability with at least a million in liability coverage
and if they have employees, a workers’ compensation policy. If they don’t have
employees and use subcontractors or “trade contractors” make sure that you
obtain certificates for them as they are independent contractors as well and need
their own insurance coverage.
If a contractor will not provide a certificate for you no matter how small the job,
it is in your best interest to find another contractor. One miswired switch could
burn your entire house down so be sure that anyone working in your home has
the proper coverage to protect you.
Update the valuation on your insurance once the job is done.
Once the job is finished be sure to have your agent run a reconstruction cost
estimator for you, based on the changes you have made. This will make sure
that the coverage for your home is accurate. This is especially important if your
renovations added any additional square footage to your home. The larger
living space in the home will increase the cost to rebuild and this will need to be
reflected in the dwelling amount on your policy. In fact, some policies require
your dwelling coverage to be at 100% of reconstruction cost so it is important to
have this reviewed once your job is complete.
If your addition happened to be a swimming pool, hot tub or something
more elaborate such as a small tennis or basketball court, you may want to
look at increasing your liability on your home. Additionally consider purchasing
an umbrella policy that provides a million dollars of liability on top of your
homeowner’s liability for a very affordable cost.
Remember, when planning your next big project to include your insurance
agent. We at the Bill Flinn Agency are here to advise and protect you for all major
changes in your life. Whether it be home improvements, marriage, kids or even
starting your own contracting business, we are here to help.
If you are interested in our home improvement coverage checklist, go to
www.Billflinnagency.com/renovate or give us a call at 412.833.5351.
Most homes are
underinsure
by an average of 1
Do you have enough
Most homes are
coverage to rebuild?
underinsured
by an average of
Erie Insurance
100%
Guaranteed
Company A
$47,000
Underinsured
Do you have enough
coverage to rebuild?
Company A
$47,000
Underinsured
Erie Insurance
100%
Guaranteed
Company B
$51,000
Underinsured
19%
*
Company B
$51,000
Underinsured
Company C
$38,000
Underinsured
Bill Flinn Agency Inc
Bill Flinn Agency Inc
This Industry Insight was provided by the Bill Flinn Agency.
For the last 40 years the Bill Flinn Agency has been serving
the Bethel Park and South Hills communities. Since
opening our doors in 1972, our mission has been to treat
our customers by the golden rule. Learn more about us at
www.billflinnagency.com, or stop by our office on South
Park Road in the heart of Bethel.
2754
S Park
Rd
2754
S Park
Rd
Bethel Park, PA 15102-3858
Bethel Park, PA 15102-3858
www.billflinnagency.com
www.billflinnagency.com
412-833-5351
412-833-5351
*64% of homes are undervalued—and potentially underinsured—by 19%, according to Marshall & Swift/Boeckh, a
leading provider of building cost data to real estate professionals. **ErieSecure Home SM with Guaranteed Replacement
Cost requires home improvements over $5,000 to be reported within 90 days. Coverage of costs to comply
with laws or ordinances is subject to limits. Depreciation may be deducted until repair or replacement is made.
Visit www.eriesecurehome.com/details or talk to your ERIE Agent for more information. Not all companies are licensed to
operate in all states. Go to erieinsurance.com for company licensure and territory information. Equal opportunity insurer.
*64%
of homes are undervalued—and potentially underinsured—by 19%, according
S1420b 5/12
to Mar
leading provider of building cost data to real estate professionals. **ErieSecure Home SM with
Cost requires home improvements over $5,000 to be reported within 90 days. Coverage of
with laws or ordinances is subject to limits. Depreciation may be deducted until repair or re
BETHEL
❘ ERIE
SPRING
2020
13 information. No
Visit www.eriesecurehome.com/details
or PARK
talk to your
Agent
for more
operate in all states. Go to erieinsurance.com for company licensure and territory informati