So you’re thinking about remodeling your home and hiring a contractor to do the work. What concerns should have I have regarding my insurance?
First of all you want to make sure the contractor you hire is licensed AND insured. Just asking the contractor if he’s licensed and insured is not enough. Ask for his license number and then look him up on the Contractors License Board website to be sure his license is valid. Ask for a Certificate of insurance showing General Liability and Worker’s Compensation Coverage.
His general liability coverage is going to provide coverage if he damages other parts of your property while he’s doing the remodel, like scratching your hardwood living room floor while walking through to get to your kitchen that he’s remodeling. Or if he knocks over and breaks a lamp. It’s also going to provide coverage one he’s completed the job. For example, unknowingly he drives a nail into a pipe that’s in the wall while working on your house. He finishes the job and leaves. The next morning you notice you have water seeping through you wall. The damage would be covered by his general liability policy.
If the contractor also has employees he is required by law to have Worker’s Compensation coverage. If he says he doesn’t have employees but then shows up with helpers, he’s either violating the law or they are independent contractors. If they are independent contractors then they too need to provide you with proof of general liability coverage and their license number. If they don’t have it you are taking a risk by allowing them to work on your house. Your homeowners policy does have worker’s compensation coverage built in, that would responds should the “independent contractor” gets hurt, but you are jeopardizing your coverage. Are you willing to take this risk?
You should also have a conversation with your agent about what the remodel will do to the value of your house. Does your dwelling limit need to be increased? Your agent will ask a series of questions and run a replacement cost valuation to help determine if you need to increase your dwelling limit.
For more information about Pleasant Hill homeowners insurance, give Insurance Agent2000 a call at 925-827-0510 today!