When hiring a contractor to add value to your home investment, it makes dollars and sense to verify the contractor’s workers’ compensation coverage. Otherwise, you may be responsible for injuries incurred by the workers while they are remodeling or repairing your home.
With this in mind, take a look at some important insurance issues before you select a contractor. To start, verify that the contractor you want to hire carries workers’ compensation coverage. If a contractor does not have this coverage, workers who are injured while working on your home could sue you. You may also want to see a copy of the contractor’s workers’ compensation policy and ask the same of subcontractors such as electricians and plumbers. It is important to make sure all of the contractor’s employees are covered – full and part time. It is advisable to get insurance policy numbers and to take that extra minute to call and verify that the insurance is still in effect.
You can also check the contractor or remodeler’s credentials, including whether the contractor or remodeler is licensed and/or a member of an applicable trade group. Of course, you will want to compare costs and solicit bids from more than one contractor or remodeler. When doing so, get all bids in writing and make sure each bid includes building specifications (what is being worked on and to what extent), labor costs, material costs, and time needed to complete the project. This will protect you from unforeseen costs while further protecting you from future misunderstandings and project mishaps.
You can call Better Business Bureau (BBB) to quickly and easily verify local references. The local BBB office will also be a good source for letting you know if there have been complaints made against the contractor or remodeler.
Lastly, most contractors and remodelers will gladly show you work done at other nearby homes. Take them up on this offer and see for yourself their workmanship and check customer satisfaction. Talk to former clients and see what they think of the contractor’s ability to meet their needs while staying on schedule and within the projected budget.