In most cases, renovating or upgrading an existing home is a good way of improving your home without selling it and buying a better one. However, you should know that you will be susceptible to a number of risks (financial and legal) during the renovation period that you don't normally face. Here are some of those risks:
Someone May Get Injured On Your Property
This is one of the highest threats you face when remodeling a home because a construction site is an inherently dangerous place to be in. Visitors to your home may get hut when a hammer accidentally falls on them or when they slip and fall on a wet pavement. Or a roofer may slip and fall from the roof if they accidentally used a weak ladder that can't support their weight. Depending on the cause of the injury, you can easily find yourself facing a lawsuit from the injury victim.
Construction Items May Get Stolen or Damaged
Construction items, which include materials and equipment, are thief magnets due to their high values. Imagine losing several containers of paint, power tools or floor tiles even before they are installed in your house. Such items may also be damaged, for example, by weather if they are not properly stored.
The Contractor May Fail To Finish the Job on Time
When people say time is money, they rarely understand that the statement can be understood literally. For example, when a contractor gives you an estimate on how long your remodeling will take, you will use the estimate on your planning and budgeting. Say you have to rent a storage place for your items when your attic, which you normally use for storage, is being renovated. If the contractor fails to complete the renovation in time, say they are negligent or fall ill, then you will have to spend more money to rent a storage space for your items.
The Construction May Cause Damage to Existing Property
In some cases, the remodeling project can accidentally cause damage to a section of the existing property that wasn't under renovation. For example, an electrical installation gone wrong may cause an electrical fire that may burn other parts of the house. Or a negligently installed plumbing pipe may burst and cause serious water damage on your house.
The best way to manage financial and legal risks is to buy appropriate insurance coverage. Talk to an insurance agency, such as ALTRE Insurance Agency Inc, to help you figure out the appropriate insurance coverage for your situation.