Your home maybe one of your most valuable assets. A key factor in it’s appreciation is keeping up with ongoing maintenance needs and tackling renovation projects using highly qualified contractors.
Hiring unlicensed contractors without the proper insurance coverage puts your family at risk of serious financial loss.
As a homeowner, you may be held liable for the actions of any contractors you have hired. Consider the potential damage to your property or injury to your family members in the event of an accident or contractor negligence.
Claims may not be covered by your personal insurance policies.
In order to protect your personal assets and the safety of your family consider these tips prior to hiring any contractor:
- Verify the contractor is licensed in the State of Connecticut: Home improvement license: https://www.elicense.ct.gov /
- Review experience and past projects
- Check financial strength
- Check references
- Obtain a written estimate with a line by line cost breakdown
- Insurance verification: obtain a Certificate of Insurance showing proof of required insurance coverage. Based on the type of project, specific coverage and endorsements will be advisable.
- Will subcontractors be used? Evaluate each using above guidelines.
- When hiring, have a written contract in place that is reviewed by your attorney. The contract should include the following elements: Broad form hold harmless agreement, list specific insurance requirements, define scope, duration, cost and warranties of the project.
Inform your homeowner’s insurance carrier of the renovation. Don’t give the insurance carrier a basis for denying your claim!
“Hiring the least expensive contractor may be the most costly option!”
Price differences may be as a result of insufficient or no insurance, poorly maintained equipment, improperly trained workers, and the use of inferior materials for your project. Following these guidelines prior to hiring a contractor may save your family from sustaining a financial loss.
Resources:
- Federal Trade Commission: https://www.consumer.ftc.gov/articles/0242-hiring-contractor
- National Association of Home Builders: http://www.nahb.org/en/consumers/homeownership/remodeling-your-home.aspx
Written by Eric P. Ferraris, CIC, CRM, CLTC, Chief Operating Officer of Tooher-Ferraris Insurance Group, a family owned and operated property & casualty independent insurance agency in business since 1932. Eric is focused on delivering tailored insurance and risk management programs backed by superior service. He works with business owners and high net worth families to reduce their exposure to loss. Connect with him on LinkedIn or the firm on Facebook. Call Eric for a review of your insurance needs @ 800-899-0093 or email him to start a conversation at [email protected].
[vc_row padding_top=”0″][vc_column css=”.vc_custom_1481834779523{padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;background-color: #ebebeb !important;}”][vc_row_inner equal_height=”yes” content_placement=”middle”][vc_column_inner offset=”vc_col-lg-8 vc_col-md-8″][vc_column_text]
Contact Us For an Individualized Consultation.
[/vc_column_text][/vc_column_inner][vc_column_inner offset=”vc_col-lg-4 vc_col-md-4″][vc_btn title=”Contact Us” style=”custom” custom_background=”#001a5d” custom_text=”#ffffff” shape=”square” align=”center” button_block=”true” link=”url:http%3A%2F%2Ftoofer.staging42.com%2Fcontact-us%2F|||” css=”.vc_custom_1481831996614{margin-top: 20px !important;margin-bottom: 20px !important;}”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]
