Don't forget to add cost of insurance to home-remodeling job

Chances are you created a project budget for your remodeling or construction project.

But chances are just as good that you neglected to tack on an extra line item for added insurance.

Your standard homeowners policy probably won't cover every aspect of the project. Most home insurance is intended to protect what's already there, not what you plan to add, improve or renovate.

Lost, damaged or stolen materials will need to be replaced. If you don't take adequate security precautions, portions of a standard policy may be void. If a worker, neighbor or passerby is injured because of some lapse in the process that could be linked to you, you could be on the wrong end of a legal skirmish.

It may be worth your time to talk with your insurance agent about your project intentions. The agent will be able to suggest riders to existing policies. The riders will be for the term of the project itself.

Eric Goldberg, associate general counsel of the American Insurance Association, says not enough homeowners bother to read existing policies to find what it does cover nor do they talk their plans over with their agent who can recommend how to fill any gaps in coverage.

Goldberg says homeowners should be concerned about liability. For example, if any portion of your project would fall over or otherwise cause damage to neighboring property, you could be liable for repairs.

Suggestions can range from roping off excavation holes to securing off-site storage of materials and appliances.

Document materials, safety measures and other insurance-related steps you take. Should an unfortunate event occur, you'll need such paperwork and perhaps photo or video documentation.

So what can you expect to pay for this protection? According to several insurance sources, the cost will vary by the size and scope of project. Since the coverage is of limited duration, the cost of added coverage could be as little as an additional $200 to a high of roughly $750.

On top of liability and theft coverage is a bump in total coverage for your home. Goldberg says that "with the way real-estate prices are going, if the improvement increases the overall value of your home, you'll need to be covered."

It can be particularly unfortunate if the house is damaged by fire or storms and you won't receive enough insurance proceeds to rebuild.

Portions of the project will be covered by the policies of your contractor and subcontractors. Sit down with your general contractor for their two cents on insurance issues.

In any event, insist on viewing original copies of insurance policies. Contractors should have policies for immediate display. Don't accept photo copies as these are easily altered. All subcontractors should have original insurance documentation, too.