Understanding the Significance of Contractor’s Insurance for Homeowners


Looking to get some serious work done on your home? Though there are DIY kits, guides, and tutorials on how to complete just about anything on your own, there are times when it’s simply best to reach out to a qualified contractor. If you’ve never had any renovations done on your property, you’re probably having a difficult time discerning which contractor is best suited for the job. There are hundreds of service providers in your area; however, there are key elements that set the good apart from the bad. You want to hire someone with experience, great customer service, and affordable rates. However, you can never underestimate the importance of hiring a professional with the proper insurance coverage for protection.

Contractors Insurance is a Must

Never, ever, hire a contractor to complete work on your home if they don’t have the proper business insurances. The construction industry in and of itself is a very risky one. While you’d hope that your home improvement project could go off without a hitch, the chances for accidents are high. If you’re not careful, you could be on the hook for more than just the quoted amount on your estimate.

But doesn’t insurance protect the contractor?

Well yes, but it also does a great deal to protect you in the event of an accident while they’re working on your home. According to http://econtractorsinsurance.com, general liability insurance is broken into three categories: premise liabilities, product liabilities, and completed operations liability. Below is a breakdown of how that works in your favor as the homeowner:


 Bodily Injuries

When having major renovations done on your home, your residence is basically a construction site. While a trained contractor will do everything in their power to ensure that dangerous areas are clearly labeled and marked off, accidents can occur. Let’s say you’re having your kitchen remodeled, and you walk in to grab something off one of the counters, but as you walk into the room, a board hits you on head causing pain and injuries. Receiving compensation for your injuries from a contractor without insurance can be a real battle. However, if the contractor is insured, any sustained injuries and expenses you’ve encountered would be covered.


Property Damage

Working with an insured contractor also protects your property in the event of an accident. Again, while they are trained and skilled professionals, they are in the business of high risks. One wrong move could result in damage to a part of your home that you weren’t having renovated at the time. Keeping the kitchen remodeling concept in mind, let’s assume that while installing new cabinets, the contractor damages your front door trying to move the cabinets into the kitchen. The damage to your property would be yours alone to fix if the contractor were unlicensed and uninsured.

Completed Products

Imagine if your kitchen remodeling project is completed. You pay the contractors for their service and a week later the shelf falls down causing some sort or injury to you or damage to your property. Who will cover the costs? General liability insurance provides financial means for the contractors to compensate you for any injuries or damages their products or services may have caused you after they’ve left the premises.

Won’t Homeowner’s Insurance Cover it?

Many homeowners make the mistake of assuming that any damage to their property would be covered by their home insurance policy. Contrary to popular belief, this is not the case. Why? Well since you’re the one who hired the contractors and invited them into your home, and therefore, any damage to your property is considered intentional.

Accidents happen, but when it comes to home renovation projects, the potential for accidents occurring are heightened. Contractors who have the necessary liability insurance are best suited for working on your home. While the insurance does provide the contractor and its company financial protection, it also does a great deal to protect you and your home.


Article Submitted by Community Writer.


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