No Permits, No Home Insurance Pay out

Thinking of remodeling your home with No Permit? Please, don't do it!

If you are tempted to bypass the permit process to save money and the time of dealing with city officials, don't do it! Below I will tell you the following most important reasons why you should not do things without a permit.

Paying a fine. The amount will depend on the scope of the project, the specific violation and the jurisdiction, but  says some fines are steep and can be easily be into the thousands.
 If a contractor is involved, the contractor and the homeowner can be fined for the same violation. Some jurisdictions will even fine you by the day.
Demolishing the project. In certain instances, your city’s inspection department to tell you to take down that unpermitted project and it is well within the laws for them to do so! However if you are lucky they might have mercy on you and insist that you halt the project until the permits are obtained. Either way, this involves wasted time and money that could have been easily saved by applying for the permits in the first place.
Difficulty Selling your Property. Maybe you got lucky and got away with not pulling a permit. But guess what happens years later when you decide to sell your house? A seller is required by law to disclose to potential buyers any remodeling/renovations done to the home. Constructing a major addition without permits could scare off some interested buyers and their loaning institutes. And you might be required by law to retroactively obtain permits to proceed with the sale, with the cost coming out of your pocket. I personally have seen myself an insurance company turning down insurance due to unpermitted renovations. This is why I endeavour to make sure that buyers make sure they can obtain insurance on the home prior to purchasing.
Voiding your Homeowner’s Insurance. All might be fine and dandy to you with that unpermitted DYI on electrical or plumbing until your place burns down or floods. Your lack of a permit is all your insurance company needs to deny your claim. Insurance companies these days are LOOKING for way to get out of paying claims, so a word of caution to the wise - dont be tempted! The consequences of not applying for a permit may also be from someone getting injured on your property to electrical fires and beyond!

For more information talk to your insurance provider.

Publishing rights Author Donna Fuller - REALTOR®
*** This article contributed by Donna Fuller and may not be copied or reproduced in while or in part without the full written consent of the contributor***