Choosing the right contractor is a fundamental safeguard for both your home improvement project and your peace of mind.
When contractors are hired without proper due diligence for home improvement projects, homeowners may run into challenges. Whether it’s managing expectations or navigating complexities, it’s important to ask the right questions before starting any projects. While there’s inherent risk in hiring a contractor, there are proactive steps that can be taken to ensure a positive experience.
To safeguard yourself and your home, it’s important to select a contractor with proper credentials—licensed, insured, and bonded. This helps foster a successful partnership and minimizes the likelihood of unexpected hurdles in your home improvement journey.
1. Check the insurance.
It’s essential to request proof of insurance from a contractor before signing on the dotted line. Verify that the insurance coverage is current and adequate for the work requested. Don’t be shy about confirming that their insurance includes both general liability coverage and workers’ compensation coverage, as this can protect you as the homeowner and the workers involved in the project.
Hiring an uninsured contractor can expose homeowners to potential financial risks in the event of accidents, property damage, or legal disputes. It is crucial to take the time to ensure adequate protection.
Check for these types of coverage:
- Liability coverage protects the homeowner from financial responsibility if the contractor or its employees are injured while working on the property.
- Property damage coverage should cover the cost of repairs or replacements if the contractor accidentally damages the property.
- Completed work coverage deals with issues that arise from the contractor’s work after the project is completed, like a leaking roof or sagging walls.
A contractor with proper insurance coverage signifies professionalism, highlighting a commitment to delivering quality work and prioritizing safety. These contractors demonstrate foresight and a greater likelihood of assuming responsibility for any accidental injuries, mishaps, or property damage that may occur during the project.
2. License, please.
Hiring a contractor with a valid and current contractor’s license relevant to the work they will be doing is imperative.
Here are a few reasons why hiring a licensed contractor is recommended:
- Professional work that meets industry standards for quality and safety is much more likely with a licensed contractor. Licensing requirements weed out the pretenders and demonstrate expertise and commitment to their trade and profession.
- Avoiding red tape and adhering to local building codes and permit requirements is what should be expected from a licensed contractor. It also increases the likelihood that the project will comply with local laws and safety standards.
- Oversight and regulation by local or state licensing boards is an avenue of accountability. In the event of any issues, there is a means to file complaints and achieve resolution through established channels.
Ultimately, hiring an unlicensed contractor adds to overall risk. Don’t take the chance, hire a contractor with the qualifications and experience licensed professionals offer.
3. Bonded contractor = financial protection.
Hiring a bonded contractor simply means they have purchased a surety bond, a form of financial protection for clients or customers. A surety bond is a legally binding contract that acts as a form of insurance that protects the customer financially if the contractor fails to finish the project or doesn’t live up to the terms of the contract.
Should the contractor not meet the contractual obligations, the bonding company steps in to pay for completing the remaining work and to compensate the customer for any losses they’ve suffered.
There are three key benefits of hiring a bonded contractor:
- Financial protection is in place should the contractor not finish the work or satisfy the terms of the contract. The insurance company that provided the surety bond can step in, investigate claims, and cover the costs to finish the work and cover any financial losses.
- Pre-vetted contractors are less risky. The surety company providing the bond will have thoroughly checked out the contractor as being reliable and capable of meeting contractual obligations.
- Contractual enforcement is made easier when dealing with a bonded contractor, providing an avenue to recoup losses. This reduces the risk of prolonged disputes, ending up in court, or suffering an unexpected financial setback.
4. One, two, three check.
When looking to hire a contractor, individuals should take the initiative to do some research. Opting for someone with insurance, a license, and a bond increases the likelihood of a successful project. Prospective clients shouldn’t hesitate to ask for proof of these credentials, as a good contractor will happily respond to such inquiries.
by LakeView Mortgage