Millions of homeowners invest in home improvement projects each year. In fact, the home improvement industry is expected to reach over 18 billion pounds. While many believe once a service is purchased, it's guaranteed, this is far from reality. Unfortunately, there are far too many cases where the contractor fails to complete a job. Whether a contractor becomes sick or goes out of business, without insurance protection homeowners may be out of luck. That's where home improvement insurance comes into play.
Home improvement affordable home improvement ensure all money paid for a project is insured. While there are many elements to this form of insurance, a reputable provider, such as IWA, offers three primary insurance policies. These include, project warranty insurance, deposit insurance, and work in progress insurance.
The majority of contractors offers a warranty for their work. Whether the warranty is on specific elements of their work, or on their work as a whole, a warranty protects consumers. However, issues will arise should a contractor be unable to honor their warranty. Project warranty insurance is an insurance backed guarantee policy. With this policy, consumers are fully covered throughout the duration of the contractor's warranty. Therefore, even if a contractor is unable to honor his warranty, the insurance company will honor its written terms.
The deposit insurance insurance backed guarantee ensures deposits are covered in the unfortunate event the contractor does not complete the project. For example, the consumer pays a 2,000 pound deposit. However, the contractor backs out of the job; taking the deposit with him. With deposit insurance, the consumer will receive 100% of their original deposit amount. While exact terms vary, this coverage typically lasts 90 days from the start of the project. Some providers extend this coverage throughout the life of the contractor's warranty. For example, if the contractor warranty is for five years, the deposit insurance policy may be extended throughout this five year period.
A work in progress policy covers a home improvement project as it's being completed. Along with protecting financial investments related to the actual project, deposits and warranties are typically covered. Furthermore, work is generally covered for 10 years after it's been completed. Should the home be sold within the coverage period, policies are fully transferable. Before executing the transfer process, contact the insurance provider for specific instructions. Often times, policy transfers require filing official paperwork. Required information includes seller name, buyer name and property address.