Anyone you hire to help around your house, such as the neighbor kid who mows your lawn, a babysitter, a contractor or other outside services, opens you up to potential legal headaches. If anyone performing work on your property is injured, you may be financially liable for the person’s injuries and disabilities.

“Many homeowners assume that their homeowners insurance policy will protect them if someone is injured on their property,” says Cindy Steinbach, Mayville Insurance Agency. “That is not necessarily true. Contractors such as builders or landscapers should be covered through their own workers’ compensation policy. However, if they do not have coverage, you would be held liable. That’s why it’s important to thoroughly check out any contractor you have work on your property.”

“Some homeowners policies may provide limited coverage for minors that mow the lawn and even domestic workers like maids or nannies. If yours does not, it might be a good idea to purchase an umbrella liability policy to supplement your homeowners insurance. Discuss your policy and your needs with your professional independent agent to determine whether or not you are adequately covered.”

“Homeowners should not rely on current market value or city tax appraisals to determine the amount of homeowners coverage needed,” said Cindy Steinbach, Mayville Insurance Agency. “Homeowners need to consider rebuilding and replacement costs when determining coverage.” With the hurricanes and floods of the past few years, building product costs have skyrocketed- especially wood and shingles. In addition, a home’s contents are typically insured at “actual cash value” in a basic homeowners policy. For example, if your television or computer is several years old, you would be reimbursed for their depreciated value, not for what it would take to replace them. “We recommend purchasing ‘replacement’ coverage for your personal property, it costs slightly more than ‘actual cash value’ but it ensures that you will be able to replace your current possessions with the latest models,” noted Steinbach. Another common issue is that homeowners will remodel their basement or enclose a porch and not alert their insurance agent about these changes. And, if you have a home office, your typical insurance policy will only provide limited coverage.Following is a list of guidelines to help you maintain adequate insurance coverage.

1.  Contact your insurance agent when you make big home improvements such as building a deck or remodeling the kitchen or bathroom.
2.  Meet with your independent insurance agent at least once per year to review your homeowners coverage and the limits you have on contents.
3.  Purchase insurance “riders” or “endorsements” for fine artwork, jewelry, coins, antiques, guns and other valuables. A homeowners policy typically limits the payments on these personal items.”We recommend homeowners take photos or videos of the contents of their homes, particularly any collections, artwork or jewelry. Then store the video and photos in a safety deposit box or off-premise safe,” said Steinbach. “This can help the claims process immeasurably as you took the time to document what you own.”

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