You have always wanted to renovate your outdated and cramped kitchen, and now you finally have the opportunity and funds to do so. After all, you might have a hard time selling your home in Suffolk County fast if it’s looking worse for wear!
You ask your friends and co-workers for recommendations on contractors and hire the one they recommend—even though you aren’t aware that you need insurance, or even how to check if your contractor is insured in Suffolk County. Some good luck is necessary for the whole process to go smoothly, and for you to get your desired results.
If your contractor isn’t insured and something goes wrong, it could be a total disaster. You see many horror stories on TV of people who got ripped off by their contractors, after all. Don’t worry, you can easily avoid that fate by making sure to hire a reputable contractor with insurance.
What is the Difference between Bonding and Insurance?
Many trustworthy contractors display badges that read “bonded and insured” on their websites or physical business locations. But what do these terms actually mean?
A Surety Bond
If a contractor bails on the project or does terrible work, a surety bond protects you from having to pay out of pocket. In other words, this type of bonding prevents homeowners from using their own cash or insurance in these situations.
An Insured Contractor
A contractor with insurance means you will be financially protected in case of damage to your property or an injury to one of the workers. If something goes wrong during the renovation process, you won’t have to bear the brunt of costly repairs or a lawsuit.
What Kind of Insurance Do You Need, and How Much Coverage Should You Get?
Checking that your contractor’s insurance covers them in Suffolk County is only the beginning. You also want to scope out how much they’re insured for and what types of coverage are included.
For example, if you live in a $1.5 million home, but the contractor is only covering up to $500,000 in damages, it might be worth it to look elsewhere.
Make sure your contractor has the following types and levels of insurance coverage:
- Liability Insurance – Covers injury to you or your family and protects you from lawsuits
- 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)
- Professional and/or Errors & Omissions insurance (if applicable)
- Automobile Insurance – $500,000 or more.
- Property Damage – Covers damages to your home during the course of the project
When you hire a contractor for any type of renovation project, it’s important to make sure they have the proper coverage in place. Don’t take chances when it comes to protecting yourself and your home—always ask questions and check that you’re hiring an insured contractor who is operating legally in your state. You’ll be glad you did!
The Steps You Need to Take
But how, precisely, can you make sure your contractor is insured in Suffolk County? Below are several steps you can take to reduce your risk and fully insure yourself against choosing an unreliable contractor.
1. Ask for a Certificate of Insurance. This document should include the contractor’s name, address, and contact information. It should also list the insurance company’s name, policy number, type of coverage, and limits of liability.
2. Make sure the Certificate of Insurance is current. You’ll want to make sure that your contractor’s insurance has not lapsed or expired.
3. Request additional documents if necessary. If you’re doing a large-scale renovation project with a longer timeline, it might be in your best interest to request additional documentation, such as an endorsement letter that guarantees you protection against any losses resulting from injury or property damage during construction.
4. Contact the insurer directly. Talk to the insurance company directly and ask for clarification on any details that are unclear.
How Does Your Contractor Handle Subcontractors?
If you’re remodeling your home and adding an extra room, the general contractor would most likely hire subcontractors to frame the walls and lay the bricks.
However, are those subcontracted workers insured?
If something goes wrong, it’s important to know that your contractor is insured (or bonded). To make sure they are, in addition to investigating the contractor’s insurance status, you need to determine how they deal with subcontractors. Sometimes subcontractors are only brought on for cash jobs without any formal employment record.
If you’re looking to have any major work done on your home, one of the first things you should check is if your contractor is insured. This is crucial and something that many people overlook. Your local real estate professionals can be a great help when checking out contractors in Suffolk County.
Don’t Worry About Contractors When You Sell to Us
Getting a bonded and insured contractor can take some time, and this might be time you don’t have on your hands if you want to make a quick, easy sale immediately. Luckily for you, Local Investor is an experienced cash home buyer interested in Suffolk County homes.
We’re ready to provide you with fair cash offers within days, plus we work on your timeline. The deal can be closed anywhere between a few days after first contact to 30 days later–and it all depends on what you want. Contact us today to learn more!
