You’ve wanted to renovate your cramped, outdated kitchen for ages. Or perhaps you are deciding between staying in your home after major damages or selling and walking away from some potential pricey repairs. Like many, asking around among friends and co-workers may initially help find and hire a contractor, but making sure your contractor is insured in Port Orchard, WA is of vital importance.
Things can get ugly – and appallingly expensive – if your contractor isn’t insured. If things don’t go perfectly, you can land in a world of drawn out disputes, expensive fixes you have to foot the bill for, and far more stress than you initially bargained for. You can avoid such a situation, however, by making sure your contractor is reputable and fully insured.
Difference Between Bonding and Insurance
Most reputable contractors advertise themselves as “bonded and insured.” But what, exactly, does that mean? It’s more than just a catchphrase—it’s a sign of professionalism and a layer of protection for homeowners. Hiring a contractor with these credentials means they take their business (and your home) seriously, and they’re willing to back up their promises with real financial safeguards.
A surety bond assures that you’re protected if the contractor skips out and doesn’t finish the project or if he winds up doing sub-par, shoddy work. This bonding ensures that you won’t have to use your own cash or homeowner’s insurance to foot the bill in such cases. It acts like a safety net—if the job isn’t done as agreed, you can file a claim against the bond to recover your losses. It’s especially valuable when dealing with larger renovation projects or repairs on a damaged home, where unexpected issues can easily arise.
A contractor’s insurance protects you against the cost of both damages and lawsuits. If during the renovation project, some kind of damage occurs to your home, you (or your insurer) won’t have to pay for repairs. Also, if one of the contractor’s employees is injured working on your project, you won’t be liable. This kind of coverage is critical—it shields you from financial risk and gives you peace of mind, knowing that accidents or errors won’t come back to haunt you legally or financially. Before hiring anyone, always ask for proof of
What Kind/How Much Insurance?
Taking steps to make sure your contractor is insured in Port Orchard, WA is just the beginning. You also need to make sure the contractor has adequate coverage and the right types of insurance. Just because a contractor says they’re insured doesn’t mean the policy is sufficient for your specific project or property value. Asking the right questions upfront can save you from serious financial headaches later on.
First, would the contractor’s insurance cover major damage to your home? If, say, you live in a $1.5 million home, and your contractor’s insurance would cover only $500,000 in damages, then you probably need to keep looking. Always request a certificate of insurance and check the coverage limits—it should match or exceed the value of your property. Don’t be afraid to call the insurance provider directly to verify coverage and ensure the policy is active. A responsible contractor will appreciate your diligence and be happy to provide proof.
Your contractor should carry general contractor liability insurance comprising the following types/levels of coverage:
- Liability insurance – Covers injury to you or your family and protects you from lawsuits. For example, if a falling tool injures a family member while walking through the renovation area, liability insurance helps cover medical costs and legal claims.
- Workman’s Comp – Protection for the contractor’s employees in the event of injury. (Not required in all states for smaller contractors, so you’ll need to ask.) If an uninsured worker is injured on your property, you could be held liable—so confirming this is a must.
- Property damage – Covers damages to your home during the course of the project. Whether it’s a busted pipe, electrical fire, or structural damage, this coverage ensures you’re not stuck footing the bill for accidents that happen during construction.
Being proactive about insurance details isn’t just smart—it’s essential to protecting your home and your peace of mind during any renovation or repair.
Steps You Need to Take
But how, precisely, can you make sure your contractor is insured in Port Orchard, WA? There are several steps you can take mitigate your risk and make sure you’ve chosen a reputable, fully insured contractor.
- Check out the contractor with the Better Business Bureau
- Check references and talk to former customers
- Have a formal in-depth meeting with the contractor before signing any contract
- Ask to see insurance and bonding documents
- Get everything in writing – all aspects of work to be done, work milestones and payment schedule, completion date, contingency clauses, and so on
How Does Your Contractor Deal With Subcontractors?
Suppose, for example, your remodel project involves adding a room to your home. In that case, the general contractor will probably hire subcontractors to do the framing and brick laying. But are the subcontractors insured?
It sometimes happens that subcontractors are brought in on a cash basis. There’s no record of their employment by the general contractor, and, as a result, they aren’t covered by the contractor’s insurance (or bonding) should something go wrong. So, in addition to investigating your contractor’s insurance status, you also need to determine how they deal with subcontractors.
Knowing how to make sure your contractor is insured in Port Orchard, WA is crucial for any major work done in or on your home. Your local real estate professionals can also be a good resource when you’re checking out contractors.
If you’re still feeling overwhelmed and want to walk through all of your options, we would be glad to assist you! Feel free to contact us by phone at (360) 329-4331 or fill out our contact form to get in touch.