Why both homeowners and contractors have to be insured


Before undertaking any home improvement project, it is important that you and your contractor are insured. Whether you're having some necessary repair work done or are undertaking an elective renovation, you want to make certain you're both covered should anything unexpected happen.

Your property insurance policy covers you, your house, and it is contents. A contractor's insurance policy covers their workers and then any damage done to your home during the renovation process. By not hiring a contractor with the proper insurance, you could be putting your house in danger. Listed here are the primary reasons why you and your contractor should have insurance prior to next do it yourself project.

Benefits of house owners being insured during renovations

The main benefit of home insurance is that it protects you if something unexpected transpires with your house. This may be a pipe bursting and flooding your kitchen, or it could be damage to your property caused by renovation work. In either case, having insurance ensures that you're financially protected.

Keep in mind that insurance is only going to benefit you for those who have it ahead of time. If you're planning a major home rehabilitation and don't actually have insurance, you're missing a crucial step of the project planning and should get in touch with a broker or insurance company. Should you already have insurance, make sure to inform them about the renovation you are planning to ensure that you're properly covered.

Benefits of contractors being insured during renovations

Certain do it yourself projects require proper licensing and insurance that you might not really be aware of. For example, any roofing, electrical, plumbing, or major structural work being carried out to your home must have insurance behind it.

When hiring the most experienced and knowledgeable professionals, mistakes can still happen. Should a worker become injured while working on your project or perhaps a window gets broken accidentally, you need to be sure that the business's insurance covers these damages. Failing to hire a contractor with insurance means that these costs will fall for you, the homeowner. And, with respect to the insurance you've, you may or might not be covered for his or her mistakes.

How to confirm a contractor has insurance

The best way to make sure a contractor has insurance coverage is to ask them for proof. Any reputable company may have no issues offering you proof. When the company attempts to brush off the question or says they can't provide evidence of insurance, don't hire that company. You won't want to put your home or even the company's workers in danger. Instead, look for a company that can confirm their insurance coverage.

Whether you have a contractor arranged or continue to be in the process of choosing the best professional for you, there are multiple online tools available to assist you in your research. One helpful online tool to add to your homeowner toolbox is HomeStars, a website that connects Canadian homeowners with community-reviewed and reputable contractors. You are able to browse through company profiles, read reviews from previous customers, and ensure proper licensing.

To do that, simply locate a Verified badge on company profiles. Whenever a company includes a Verified badge, this means that they've passed HomeStars' rigorous background checks, including criminal and financial. And because HomeStars asks contractors to provide evidence of proper licensing, you can rely on that you are hiring a reputable professional. Once you've found a couple of companies you're interested in, get in touch with them and be sure to check out insurance prior to hiring.

Research your contractor, whether you chose them or not

If you're having a repair or renovation carried out because of making an insurance coverage claim, you may or may not have control over the organization that is doing the work to your house. While it's unlikely that the insurance provider would hire a contractor who is not insured, it certainly is best to double-check for your reassurance.

Once you realize the specific company assigned to work on your home, be sure to try them out online. You can look at their company website and HomeStars profile. This way you can read reviews, take a look at project photos, and ensure proper licensing. If you notice any warning flags while researching them, for example not providing proof of insurance, be sure to bring this up to your broker or insurance company, because they may be able to assign a different contractor to your project.

Alternatively, you may get to determine which company you hire for your next home improvement project. This may be since your insurance provider is too busy to find a contractor for you personally, or because you're electing to possess work completed to your house. Either way, will still be extremely important to simply hire a contractor who's insured for the work they're doing.

In this scenario, you've got to be diligent inside your research. Remember to take a look at any potential company online, including their reviews, licenses and insurance. Make sure you ask the company upfront regarding their insurance policy and do not consider companies that offer a lower price try not to have insurance.

How to deal with renovations before your home is insured

Many homeowners buy older homes with the intent to renovate and connect them up. In this instance, your house may require work done prior to the home can actually be insured. To get it up to code, you will likely have to employ several contractors to do the required work. This might include projects like electrical, plumbing, or structural work that needs both proper licensing and insurance on the contractor's part. You can use HomeStars to help you narrow down your search and find companies that possess the right experience working with older homes. Again, make sure to read reviews to check out a Verified badge to help figure out how reputable each company is.

When you are in this scenario, it's very important that the contractor is insured – because your home currently isn't. Contrary were to happen, you want to ensure that the contractor's insurance can cover them. Should you hire an uninsured electrician, for example, plus they accidentally cause an electric fire while caring for your home, it will likely be up to you to cover the damages out of pocket.

Now that you know how important it's for both parties to become insured, you can confidently move forward with planning your next project. Whether you're having work done because of an insurance claim or are finally getting around to some much-needed elective renovations, be sure you and your contractor are generally covered.