There always seems to be a kitchen, a bathroom, a something to renovate if you’re a homeowner. At some point, most homeowners will plan major home improvement projects and will outsource the project to a home improvement company to manage the process.
One of the biggest mistakes homeowners make is not verifying that the contractors they hire, and subcontractors they hire, are insured. Before hiring anyone to undertake a renovation project in your home, it is extremely important to know that they’re insured to avoid being held liable should something go wrong. A shocking amount of people do not want to, or do know to, properly vet the people they hire to work on their homes.
Firstly, you should never be uncomfortable, or afraid, to inquire about a company’s credentials. A good rule of thumb is that if a company is qualified, licensed, and insured, with nothing to hide or be evasive about, they’ll be happy to offer any and all information you require. If they don’t show you what you require, you should start searching elsewhere for an honest and legitimate company.
Most people don’t have much experience hiring companies for their renovation projects and don’t know the importance of hiring an insured company. Unfortunately, too many people learn the hard way. Something goes wrong with a project and all of a sudden homeowners find themselves faced with lawsuits or claims on their homeowner’s policies. A home improvement company’s general liability and worker’s compensation insurance will cover injuries on the job site, property damage, and negligence in craftsmanship. Imagine the potential trouble of having uninsured workers in your home. Avoid learning the hard way, and do your due diligence!
Remember to be careful to do your research prior to hiring anyone. Verify credentials, perform quality assurance, and check a contractor’s qualifications with the relevant certification board or insurance company. Request copies of the company’s General Liability policy, Worker’s Compensation policy (if required), and Property Damage coverage. Contact their insurance carriers to establish that they’re current, or you could be held liable for any injuries and damages that occur during the project. To cover your home and property, it’s a good idea to have a certificate of insurance issued in your name. Don’t forget to contact your home insurance carrier to verify that your policy covers your home and property during a renovation. Some home improvement projects may void your homeowner’s policy if not approached properly.
