Consumption and Real Estate
How do permits work along with Homeowners Insurance?
Question : How do permits work along with Homeowners Insurance?
Doing a few projects at home that require a permit. I have been told that getting a permit helps in case of homeowners insurance claims. Not sure how this works. Does the insurance company have a way to look into my home records to see whats been worked on?
homeowners insurance claims
Best answer:
Answer by Got Wild, Staring Eyes
They won’t cover any claim related to a project that requires a permit, but a permit wasn’t issued.
Just get the permits and you are good to go.
Not so much as they can see a list of things that have been worked on but they can compare the current state of your house to the original permits and plans filed with the city plus any permits during the homes life.
Insurance companies first objective is to deny claims that they do not have to pay or they don’t cover. If they can tell you its not covered because the work was done with out a permit then that saves them money. Basically they don’t want to spend money on irresponsibility.
But if work is done legally and the city approves it then the insurance company has to comply with those regulations.
Think of it this way. Its the blame game. You install a light switch with out an electrician, with out following city regulations. Someone flips the switch and gets electrocuted. Does the insurance you have cover you for neglect or disregard to the law? Probably not. So legally they will claim that 100% of the blame falls on you and you are responsible.
Now if an electrician does the work and the city approves it and you only paid for the service and followed all regulations and even asked to make sure it was done properly. And someone gets electrocuted, your insurance will step in and place blame on the city and the electrician.
Hope that helps. Its a pretty big room filled with red tape really but its just everyone CYA.