Want To Build A Dream House?
When building your dream home you put all of your money, time, and emotion into it. But, don’t forget that a house that’s under construction is more prone to damage or destruction than any other time in the home’s history. Newly installed plumbing can leak, intruders may come into vandalize your vacant home, small critters may appear where there once were none – just, to name a few of the possibilities. But however, there are always measures that you can take to help prevent and minimize these risks.
Here are 5 measures that you can take to help minimize your risk during the construction process:
1. Confirm that your contractor is adequately insured. When you are about to select a contractor you should ask to see a copy of the “certificate of liability” to confirm adequate insurance limits.
2. Read the fine print. Before you sign a contract, you need to be sure that the terms of the contract between you and the contractor does not waive your right to pay for a damage that was caused by someone else. This would be called “waiving your right to subrogation.”
3. Keep a good number of fire extinguishers throughout the worksite. There always should be at least one fire extinguisher for every 2,000 square feet of space on each level of the home. The fire extinguishers should be ABC-rated, Underwriters Laboratories Listed (UL), and at least 10 pounds in capacity.
4. Install a residential sprinkler system. If the sprinkler system is installed during the beginning stages of building your home, a sprinkler system is at most time an affordable way to protect against fire.
5. Many construction materials are highly combustible. Sawdust, cardboard, and other debris and flammable materials need to be removed daily to help minimize the “fuel” available for a potential fire.
Special accommodations need to be made when dealing with higher value building projects, including:
For projects $1 million or more in value:
• Install temporary fencing to keep unwanted visitors away from the construction site
• Add night lighting to further discourage intruders
• Install or maintain fire and burglar alarm systems
For projects $3 million or more in value:
• Hire a security guard
• Install a monitored video surveillance system
Your carrier may also conduct an appraisal at the renovation or construction site. The appraisal will help to estimate the replacement cost of your home, so you and your insurance broker can determine the amount of homeowners insurance that you will need in the short and long-term.
Taking the extra steps to better protect your home may help lower the cost of you homeowners’ insurance policy once the renovation or construction is complete. In most states, your carrier will offer premium credits (policy discounts) if you have sprinkler systems, fire and burglar alarms, surveillance systems and more. Your carrier can offer recommendations that will help reduce your policy premium.
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