Doing renovations at home can be stressful, but also very rewarding. However, from a homeowner’s perspective, home renovations also come with a lot of responsibility and potential hazards and liability issues. This includes having other people work in your home and use such items as ladders, power tools, scaffolding, and flammable materials. Potential hazards include loss or theft of uninsured property, workplace injury or death, criminal activity by employees or contractors at the property, faked workplace injuries, fire, flood, or weather-related damages while construction is taking place, and abandonment of the projects by the contractors due to personal or financial difficulties.

Before starting to work on a major project at home, make sure to check your insurance coverage. Check whether you have adequate Umbrella Insurance coverage, which at least should protect your investable net worth. When hiring a contractor, check if they carry Contractor’s Insurance, because their coverage is designed to protect you in the event of mishaps. Make sure that you have Worker’s Compensation in place for all employees, contractors, and subcontractors, in order to protect your finances in the event of workplace injuries. Consider purchasing Bond Insurance, which will protect you in the event the contractor fails to complete the job. Do not forget about Builder’s Risk Insurance, which will protect your building and property while it is in construction. And last but not least, check if you have the necessary endorsements to your Homeowner’s Insurance policy to have enough liability coverage and add temporary riders as needed.  

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