It’s exciting to modernize and update your home. Some homeowners in the Montello area are finding it beneficial to remain in their homes longer and, instead of moving, they are adding additions or remodeling to make the property a better fit. That’s fantastic, but before you do so, we encourage you to learn as much as you can about your contractor.
Here’s an example of what could (and has) happened. You hire a contractor to handle a new home addition – perhaps a new bedroom onto your home. The contractor does a good job, but on the last day, falls from a ladder, suffering a broken leg and other injuries. This type of incident happens even to the best providers. When it happens to you – in your home, you could be financially responsible if your contractor does not have the right type of insurance in place.
What Insurance Does the Contractor Need?
To minimize your liability in a case like this, the contractor you hire needs to have adequate insurance coverage. Your first step is always to verify the contractor. He or she should produce a license to operate in your area. Second, the contractor should provide you with a Certificate of Insurance, showing you there is coverage in place.
Then, find out what type of insurance the contractor has. In a case like this, where the contractor is working in your home, you’ll want to question policies such as the following:
Workers’ Compensation: Any business with employees working full or part-time in Wisconsin has to carry workers’ compensation coverage. This insurance may cover the costs of worker injuries while in your home and on the job. Sole proprietors should also have adequate coverage, even if it is not a legal requirement.
Commercial General Liability: This insurance policy provides financial support if someone sues the company. Let’s say the worker falls, and the company does not have workers’ compensation. In this case, you may sue or file a claim against the liability insurance for the losses you incur.
Builder’s Risk Insurance: This is a specialized policy that ensures the contractor does a good job on the work they provide. You do not want to find out later the workmanship was poor and it causes you to lose thousands of dollars.
Check Your Home Insurance Too
In addition to making sure the contractor you hire has enough insurance, you also want to verify your home insurance policy has ample protection. In this case, mentioned above, if the worker sues you because of his or her injuries, you want to have enough liability insurance on your home to minimize any financial losses you have to pay out. Remember, this is not uncommon, and we’ve seen it happen before.
Our home insurance agents at Giuffre Insurance are happy to take a closer look at your home insurance policy. Let us know what type of work you are having done. We can not only help make sure your policy is adequate, but also verify the coverage the contractor has. This can give you the peace of mind you need.
Also, if you do add value to your home through these renovations, especially with a new addition, let us know. We will include this in your policy to be sure your new property is protected.
Review Your Home Insurance Policy with your Insurance Agent
When it comes to making sure you are protected, your home insurance agent at Giuffre Insurance is here for you. We encourage you to get in touch with our team, and we’ll help you ensure your contractor is safe to work within your home.