Regrettably, many homeowners have paid dearly for using uninsured contractors, discovering too late that they ARE NOT covered under their homeowner’s policy (as a lot of people think).
When hiring for a home improvement project, make sure the contractor you choose is covered by both General Liability and Workers Compensation insurance! General Liability covers damage to your property during the course of the work. Workers Compensation protects workers if injured while working at your home.
So, for example, say your roof is in progress by an uninsured contractor and leaks during a rainstorm. Water pours in, damaging your ceiling and ruining your Pergo floor. Whose is going to reimburse you for the damages…the uninsured contractor?
Maybe, but my bet is on most likely not. But, damage to your home is the best case scenario. Imagine now, on this roof job, a worker falls and is seriously hurt, resulting in a permanent disability. Who do you think the personal injury attorneys will try to collect money from for medical bills, loss of income, pain and suffering, etc. if the worker was not insured? If you guess you, the homeowner, you’re right (unfortunately)!
Some homeowner policies have minimal provisions and some allow you to buy a rider for additional coverage, but typically uninsured contractors are not covered under a homeowner’s policy. Odds are that you will also get a much better job and overall experience dealing with an insured contractor. If your contractor is not insured, what else is he not? For sure, not licensed (as you need insurance for such) and probably, not reputable.
All in all, most homeowners choose not to take the risk to their home and finances by using an uninsured contractor. And, don’t take chances! Just because someone tells you they are insured, doesn’t mean they are. An insured contractor can easily have a certificate of insurance sent directly to you from the insurance agency. Get proof, and you’ll sleep better during your home improvement project.