Many of us have undertaken remodeling projects during Covid-19. If you are like most homeowners, you love selecting the fixtures, fabrics, and paint colors of your home improvement project.
But there is one very important item that you may overlook—making certain you are properly insured.
Why Proper Insurance Matters
You may need to review your insurance before beginning any home improvement project since it can expose you to additional financial risks.
If you choose to act as your own general contractor (in other words, you organize and order supplies while hiring subcontractors for the work), you may be opening up yourself to additional liability (such as an injury to a worker or third party) that may not be fully covered by your current homeowners insurance policy.
Whether it’s an extra room or an updated bathroom, many home improvement projects will increase the value of your home. However, too many homeowners fail to review their current policy’s replacement value limits, which may no longer be high enough to cover any losses that occur after your home improvement.
Obtaining additional coverage shouldn’t wait until you’ve completed the remodeling. After all, at any point in the process, you will have supplies and completed work that may not be covered under your existing policy.
Ask your insurance agent about increased limits, liability insurance, and workers’ compensation.
To ensure that you are properly covered, meet with your insurance agent before starting your projects and discuss with him or her any need for modifying your current insurance coverage.
Final thought.
Insurance is a complex topic. If you need guidance to understand what you need to protect what you have spent a lifetime building, consider reaching out to me and gain some peace of mind.
Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? If you have a net worth over $2 million and need help from a wealth manager, the Peak Wealth Planning team can assist you.
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About the Author
Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind.
Peak Wealth Planning offers personalized concierge services to meet your wealth management needs, including financial planning, investment management, ESOP diversification, retirement income, insurance, and estate planning. As a fee-based financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states.