The vast majority of homeowners will only hire contractors who are licensed, insured, and bonded when dealing new construction or remodeling projects. However, the majority of homeowners have no idea what these policies really mean when it comes to actual coverage on their property. The most important of these three elements is the one related to insurance. This policy is the one that is meant to protect you and your assets should accidents occur while the contractor is working. What this insurance typically represents is a generalized liability policy on the part of the contractor. It is meant to cover basic accidents that may be likely to occur on the job site. These accidents may cover bodily harm to any number of individuals in addition to damage caused to one’s property as well. It is a very good idea to understand just how this type of insurance policy protects you when performing home remodels by looking at these five advantages of hiring contractors with insurance on board.
Injuries Due to Negligence
Should the contractor make a mistake that harms you or anyone on your property outside of the contractor themselves or their employees, then the workers comp policy will cover the medical expenses as long as the injury can be proven to be the fault of the worker. The injuries must be documented, and there must be proof that the injury was directly caused by the contractor who has been hired. Any accidents that occur which result in injury should be immediately reported and extensively documented at the time of their occurrence.
Property Damage at the Hands of Workers
Damage to your property or surrounding neighbors as the results of mistakes made the contractor will also be covered by these kinds of liability policies. There are plenty of examples that represent this sort of damage. Falling paint cans are one such example. Unstable floors or decks that have been installed by contractors that caused damage or bodily injury are another prominent example. Again, the incident must be immediately reported and documented in order for the claim to be properly filed.
Legality
Most states require that contractors be insured before any type of work begins. Should you be using an uninsured contractor, then the work that they perform could result in fines to either yourself or the contractor performing the work. These types of systems being set in place also help to ensure the level of quality of work being performed as well. Contractors who deal in electrical work, plumbing, and other critical areas of the home must be insured in order to stay in business.
Staying Up to Code
Work done by general contractors must be up to code and adhere to local regulations when your property is inspected. A contractor who is insured will certainly have the knowledge required to perform renovations that will be up to these standard in your area.
Accidents Will Not Just Be Accidents
Some actions by workers are honest mistakes that cause damage nonetheless. However, instead of having to bear the financial loss or extension in the time that it takes to complete the job when small setbacks occur, the liability coverage will be on your side. Fires and other small damages to property will be covered quickly by filing the proper claim with the contractor’s insurance provider.
Homeowners must also keep in mind the fact that there are plenty of things that these policies will not cover. Such concerns include dissatisfaction with the work of the contractor, disputes over payment for jobs, and excess materials for any job that may not have been discussed upfront before work actually began.
