Your Remodeling Project: Insurance Liability

Posted By: David Michelson Homeowner Tips , President's Blog ,

When it comes to hiring a remodeling contractor there are many things to consider:

  • do they understand your wants and needs for the project?
  • do you like the work they’ve done in the past?
  • do you agree on the budget?
  • do they have good online reviews?
  • are they available? (This one is especially tricky as we are coming out of the pandemic. You can read my previous post “Why is my contractor so busy?” for more on that.)

What many homeowners don’t realize is there are additional, and even more critical, things to know about your contractor before signing a contract.

Does your contractor have a license? In Georgia, a person or company performing work related to construction contracting on a single or two-family residence is required to hold an active license from the State Licensing Board for Residential and General Contractors.

Does your contractor need to get a permit? Yes. In Georgia, a building permit is required when you remodel your home. Any time you are making any alterations to an existing structure, especially structural, you need a permit.

And perhaps the most overlooked consideration…

Should your contractor have liability insurance? Yes. According to Jackson Bentley, Commercial Risk Advisor at Little & Smith, Inc. in Marietta, “As a homeowner, you assume liability by the contractors you hire, if they are not properly insured. Getting evidence of insurance from prospective remodeling contractors is a great first step to ensure your personal liability and assets are not in a jeopardized position.” Before you sign a contract with a contractor or remodeling company, you want to verify these very important qualifications. Bentley adds, “The importance of working with a remodeling contractor that has a premier risk management and insurance program is pivotal and should not be overlooked.”