Spring is coming, and homeowners all across the city are planning outdoor projects to start the season off right and improve the appeal of their homes. To prepare for these projects, some homeowners attend home and garden shows, while others may look for inspiration in magazines or on the internet. Regardless of how you decide to prepare for your project, however, it is always important to consider the impact it will have on your insurance coverage needs.
Will Your Project Be Covered?
Many homeowners assume that their existing homeowners’ insurance policies will cover outdoor projects they complete in the spring. However, this is not always true. In general, homeowners’ insurance won’t cover projects that focus primarily on changing the land around your home. Examples of projects that usually fall into this category include fire pits, raised gardens, trees, plants and hardscaping projects.
On the other hand, if your project involves a structure, it may be covered under the “Coverage B – Other Structures” portion of your policy. Examples of structures that usually fall into this category and can receive coverage include pools, decks, fences, garages, gazebos, and sheds.
How Much Coverage Do You Have?
If your project is covered under the “Coverage B – Other Structures” portion of your policy, the coverage limit will usually be equal to 10 percent of the limit on the main part of your policy, which applies to your dwelling itself. For example, if the coverage limit that applies to your dwelling is $250,000, then the limit on the Coverage B portion of your policy will be equal to $25,000.
Some insurers may have larger or smaller Coverage B limits. To find out exactly what coverage you have, talk to your agent.
Is Your Coverage Sufficient?
Completing a spring project requires a significant investment of both time and money. When completing one of these projects, you want to be sure that the results of your efforts will be protected with an appropriate insurance policy. If the coverage available from your existing insurance policy isn’t enough, it may be in your best interest to ask about additional coverage. Talk to your insurance agent to see if it’s possible to raise your coverage limits or purchase a supplemental policy.
Other Things to Consider
Certain projects you complete may pose safety concerns that affect your insurance coverage. For example, if you are planning to put in a pool, your insurer may refuse to cover it all together, or you may need to follow certain guidelines with regard to covers, fences and other structural issues. Likewise, many insurers impose restrictions on structures that involve fire, such as outdoor kitchens. Talk to your insurance agent to learn about these regulations before you begin a project.
If you are planning a spring project and you want to discuss your insurance needs, contact Pagel & Associates Insurance Agency today to speak with an experienced insurance agent.