Before Remodeling, Check Your Insurance

Americans spend more than $180 billion on home improvements every year, according to the Remodelors Council of the National Association of Home Builders.

One mistake many homeowners make while remodeling is not talking with their insurance agent before the remodeling begins. By speaking with your insurance agent first, you can determine how much the project will increase the value of your house.

The Independent Insurance Agents of Americas estimates that one-fourth of remodeling projects add at least 25% to the value, yet most homeowners don't increase their insurance coverage to protect that investment.

Home-repair and Remodeling Blunders: Avoid These Mistakes

You can get taken when you try to get your house fixed. The good news is that you can screen out many problems by heeding some common-sense precautions.

* don't blindly take the lowest bid. Low bidders may be offering a great deal. Or, they might be inexperienced or worse, prone to taking shortcuts.

* Maintenance matters. When it got cold last fall, we tried to turn the furnace on, says a homeowner from Michigan. It wouldn't start, so we called for service and were told that the blower motor was bad. The furnace filters hadn't been changed in quite a while. That wrecked the blower motor. And it overheated the furnace, causing the cracks.

* Relatives are not always trustworthy. A California homeowner says, We wanted to save money on our home remodel so we hired a handy family member who needed a job. We ended up paying at least as much as a licensed contractor would have charged, but nothing is finished.

* Experts can screw up, too. In Wisconsin, one consumer survived a brush with death last fall, after he started a new furnace that a heating company had installed. His wives complaints about headaches and fatigue didn't register until he saw a doctor discuss carbon monoxide poisoning on TV. When he called the gas company, their carbon monoxide meter went off the scale. It turned out that a seal was missing from the new furnace, so it was filling the basement with fumes.

* Ask questions first. Be sure to ask the pertinent questions before you sign the contract.

* Look ahead. Planning may be a hassle, but its cheaper than lumbering blindly onward.

* To finance your home fix-ups, talk to a credit union representative today or apply online.