Labor Day weekend often means a little extra time at home—and for many homeowners, that means finally tackling a project that’s been sitting on the list. Maybe it’s a new deck, a kitchen remodel, a roof replacement, an addition, or another project that requires bringing in a professional.
Before the work begins, there’s an important step that’s easy to overlook: make sure your contractor has the right insurance.
Start With General Liability Insurance
A reputable contractor should be able to provide proof of general liability insurance. This coverage is designed to protect against certain claims involving bodily injury or property damage caused by the contractor or their work.
For example, what happens if a contractor accidentally causes significant damage to another part of your home while completing a renovation? Or if someone is injured because of a hazard created during the project?
Those are exactly the kinds of situations that make verifying insurance before work begins so important.
Ask your contractor for a current Certificate of Insurance (COI) and take a moment to make sure the policy is active for the duration of your project.
What About Workers’ Compensation?
If a contractor has employees working on your property, workers’ compensation insurance is another important consideration.
Workers’ compensation requirements can vary based on the contractor, number of employees, type of work, and state law. Rather than assuming everyone working on your property is properly covered, ask the contractor directly about their workers’ compensation coverage.
The best time to find out how an injured worker would be covered is before an accident happens.
Don’t Forget About Subcontractors
Large projects often involve more people than the contractor you originally hired.
A remodeling company might bring in electricians, plumbers, roofers, painters, flooring installers, or other subcontractors to complete different portions of the job.
Ask your contractor how insurance is handled for those subcontractors. Are they covered under the general contractor’s policy, or are they required to carry their own coverage?
Knowing who is actually doing the work—and whether they’re appropriately insured—can help prevent some unpleasant surprises later.
“Licensed” and “Insured” Don’t Mean the Same Thing
You’ll often see contractors advertise themselves as “licensed and insured,” but those are two different things.
Licensing generally means a contractor has met certain state or local requirements to perform particular types of work. Insurance addresses the financial risks associated with the work itself.
Requirements can also vary depending on the contractor and the type or size of the project. That’s why homeowners shouldn’t simply assume coverage exists.
Ask for proof.
A professional contractor should be accustomed to the question and willing to provide documentation.
Your Own Homeowners Insurance Matters, Too
There’s another insurance policy worth checking before a major renovation: your own.
Significant improvements can increase the value and replacement cost of your home. Adding square footage, building a detached structure, installing an outdoor kitchen, or completing a substantial renovation could mean the coverage you had before the project is no longer enough afterward.
Major construction can also introduce risks that may need to be discussed with your insurance carrier before work begins.
That’s why it’s a good idea to call your insurance agent before starting a large project—not just after it’s finished.
Your agent can review your current homeowners policy, explain how the project may affect your coverage, and help identify questions you should be asking before construction gets underway.
A Little Homework Before the Home Work
If a home improvement project is on your Labor Day weekend agenda—or you’re using the long weekend to start planning one—take a few minutes to think beyond materials, contractors, timelines, and budgets.
Ask about insurance, verify the coverage, and make sure your own homeowners policy is ready for the changes you’re making.
At Runnels Insurance, we’re always happy to help you understand your coverage and make sure your insurance is keeping up with your home.
Before the first hammer swings, give us a call. A quick conversation today could prevent a much bigger headache tomorrow.