Hiring a contractor for home repairs or renovations is a significant investment for any homeowner. However, it also comes with a certain level of risk, as accidents can happen during the project. In order to protect yourself and your property, it's important to request a certificate of insurance from any contractor you are considering hiring. Here are some reasons why:
Verification of insurance coverage:
A certificate of insurance provides verification that the contractor has insurance coverage. This means that if an accident were to occur during the project, the contractor's insurance should cover the damages, rather than the homeowner's insurance.
Liability protection:
If the contractor causes damage to your property or injures someone while working on your home, their insurance is responsible for the costs. However, if the contractor doesn't have insurance or doesn't have enough coverage, the homeowner may be held liable for any damages or injuries. A certificate of insurance helps to ensure that the contractor has the necessary coverage to protect both themselves and the homeowner.
Peace of mind:
Requesting a certificate of insurance from a contractor can provide peace of mind to the homeowner. Knowing that the contractor has insurance coverage can alleviate some of the stress and worry that can come with home renovation projects.
Compliance with legal requirements:
Depending on the state and local regulations, there may be legal requirements for contractors to have certain types of insurance coverage such as workers compensation. By requesting a certificate of insurance, the homeowner can ensure that the contractor is in compliance with these regulations. Imagine if a worker got hurt on your property. You want to make sure that that worker is covered by his employer’s workers compensation policy.
Professionalism:
Requesting a certificate of insurance from a contractor demonstrates professionalism and responsibility. It shows that the homeowner is taking the necessary steps to protect themselves and their property. When a contractor has the proper insurance, he/she is demonstrating that their business is a professional venture. You don’t want to hire someone without insurance – EVER!
You should ask to be named on the certificate as an “Additional Insured”. This will provide you with extra protection if there is a claim. You should insist that they carry at least $1,000,000 liability coverage. If the contractor has employees that are going to be working on your property, make sure the contractor also carries workers compensation insurance as well.
In conclusion, requesting a certificate of insurance from a contractor is an essential step in protecting yourself and your property during a home renovation or repair project. Don't hesitate to request a certificate of insurance from any contractor you are considering hiring, and if you have any doubts or questions, consult with an insurance or legal professional. We are always happy to review their certificate of insurance.
Ready to Discuss Home Insurance?