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How to Protect Your Investment After an Expensive House Renovation

House renovations are a costly investment, and it is vital to protect your investment after the work is complete. You may be able to get reimbursed for some of the expenses if you take extra precautions while the renovation is going on. After all, it would be a terrible situation if you spent thousands of dollars on new, quality appliances and a top-of-the-line heating and cooling system, only to have them ruined by water leaks. Here are a few things you can do to ensure your renovation investment stays intact after the work is finished.

2 workmen working on the exterior of a building

Get a Home Warranty

A home warranty is a great way to protect your investment after a renovation. It will provide you with a safe and secure feeling that if something goes wrong in your house, there is help available for you. You can get either an "extended warranties" or a "home service contract," depending on what will work best for you and the kind of work done on your home. If you do not know the best policy, you can check out the different home warranty companies to find one that offers the best terms. For example, getting an extended warranty is probably the best choice if doing a more extensive renovation project. This kind of insurance provides better coverage than a service contract would. If something goes wrong with your furnace or water heater after the third year following installation, it will likely not be covered by a service contract. Still, you could cover it under an extended warranty.

Get Homeowners Insurance For Extra Security

It would be best to get homeowner's insurance after completing your renovation project. After all, if there is a water leak or another problem that causes damage to the inside of your home, then having this type of policy will allow you to get reimbursed for some of the costs. Having an insurance policy is crucial when dealing with large renovation projects. Make sure that you have a comprehensive policy that will cover unforeseen circumstances.

Get Renters Insurance if You are Renting

You should get renters insurance to protect yourself and your deposit money if you rent your house while the renovations occur. If there is a water leak or some other kind of problem with your home due to faulty artistry, then they will reimburse you for any damage that occurs. If the problem is severe and it causes a lot of personal items to be ruined, such as clothing or electronics, renters insurance can even reimburse you for those losses as well.

Get a Manufacturer's Warranty for Every New Appliance You Get

One of the best things to protect your house after a renovation project is to ensure that every appliance you are getting has a manufacturer's warranty. Many devices come with at least one year of warranty coverage. Still, it is also good to check for extra warranties or insurance policies if the item seems high quality enough. For example, if you get a new refrigerator and it breaks in three years, having an extended warranty can keep you from losing all of the money you spent on the appliance.

It is also vital to ensure that everything is up to code with your renovations project. When contractors build houses, they are required by law to use certain materials and cover their work with a warranty for several years. If they do not follow the law, you could be held responsible for all damages resulting from their mistakes or poor artistry.

Work With Insured Contractors

Another smart thing to do is to make sure that all of the different contractors you are working with have liability insurance for their jobs. In many cases, if a contractor's work is faulty and causes damage to your house or personal items, then the only person who can be held accountable is him. If he does not have any liability insurance, he could take the loss and disappear, leaving you to find another contractor.

workman standing in front of a chopsaw

Be Sure Your Renovations are Up to Code

Finally, make sure that all of the renovations that you will do on your house are up to code. You can call your city's planning or building department to determine what they require before any new work is approved. If the contractors you are working with do not follow these stringent rules, they can be fined or even lose their license to perform renovations in your area.

There are several homeowner's insurance policies that you should obtain after your renovation project is completed. A homeowner's insurance policy can cover damages to the inside of your house, and a renter's insurance policy will provide extra security while you are living somewhere else. Also, any new or expensive appliance should have a manufacturer's warranty from the get-go. Finally, make sure that all of the renovations on your house are up to code and done by professionals with liability insurance. If you get any policies like these, you will be reimbursed for some of your renovation costs if a repair is needed later on.