Understanding the Insurance Policy of a Remodeling Contractor

One of the things you have to consider when looking for a remodeling contractor is the insurance policy applicable for the job. As the owner of your house, it is practical to check whether you would be having insurance in case the work does not go as smoothly as you want it to be. Whenever something bad happens to your property and this is the responsibility of your contractor, it is just practical for his insurance company to be the one to pay for the damage.

Property damage, financial loss and bodily injury are some of the inevitable risks that can be considered as essential components on your remodeling project. It is highly important for you to know the kinds of insurance policies that your contractor must have. This also applies to any subcontractor that may be part of your project as well.

General Liability

This is the most fundamental policy you must look because it covers the damage to your property caused by flawed workmanship. Also, this insures the contractor for damage to property and bodily injuries due to negligence or faulty operations.

Workers’ Compensation

Oftentimes referred to as employers’ liability, this insurance policy grants disability and medical insurance for injuries that occurred during work. This means that you will not be the one accountable for the medical costs brought about by injuries. Your homeowner’s policy would not be involved because the source of remedy would be the compensation policy of the remodeling contractor.

Builders’ Risk

This is the type of insurance policy that insures damage to any material that is about to be used during the job. Damage to these materials could be the result of natural elements such as fire, water and wind. This also covers the damage of materials due to theft, whether the materials are on a delivery truck, provisionally stored, or on your place and ready to be installed. Even if your homeowner’s policy could still be involved to losses of materials, it is vital to let your remodeling contractor furnish you with this kind of coverage for the work to be done.

With the above-mentioned insurance policies that you should know when hiring a remodeling contractor, do not forget to look for a certificate of insurance. Ask for this document and read it thoroughly. This certificate should indicate the type of insurance and the amounts of insurance that the company of your contractor has.

Donna J. Seymour