Insurance To Have When A Contractor Works On Your House ?

[Robert11]

Hello:

Will be having a contractor in to put up some new siding.

I remember reading quiote some time ago that it is a wise idea to protect yourself with some kind of insurance in case the contractor doesn't pay his workers and they file a lien against you, (as well as against the contractor), which apparently they can do.

What kind of insurance am I thinking of ? Is it something I get, or insist that the contractor have ?

What other insurance should I check to see that the contractor has ?

If he's not too thrilled about giving me the details on this, how can I check what, and if, he actually has ?

Thanks, Bob

[Charles Schuler]

The contractor should be insured and be happy to demonstrate that he is.

[Tom The Great]

IMHO:

Get a copy of all required insurances. Insurance agencies give a page, like your car's insurance card but bigger, summerizing the protection covered. Then call the insurance agency and see that it is inforce. Then call the exact day they start work, to make sure it is still inforce.

The insurances I was would look for is:

1. General Liablity.
2. Workmen's Comp.

But then this is just me, I don't generally trust contracters. :D

later,

tom

[JJ]

"Robert11" wrote

It's called a "Performance or Surety Bond". You don't get one, it would be supplied by the contractor. However, some municipalities require the contractor to be bonded, the contractor pays their insurance company yearly for these bonds. And, most governmently work requires a seperate bond when work exceeds a certain amount of $, usually around 100k.

If your municipality does not require the contractor to be bonded, do expect an additional amount of approx. $100.00 for a surety bond on your project. This amount can of course vary.

[Steve B]

You are confusing several different issues, all of which don't mean squat.

A contractor is required to be "bonded" which is another name for insurance for them messing up. Usually, it is called a surety bond, in some cases a performance bond. This is a % that the contractor pays for a bond that says if he doesn't finish a job, there is a fund to pay the next guy to come in and finish his work.

In an ideal world, these things flow like warm butter. In reality, it is more like lava. You have to get it to the right temperature to flow.

Ask for his bonds. These are the things I believe you are interested in. There is no "insurance" that someone will perform. The difference between insurance and a bond is ................

with insurance, you are basically betting you won't have an accident.

with a bond, you are putting up money that says you will do what you say you will do.

Steve

[HeyBub]

You are prudent to be concerned and you are correct in that you should check the bona fides of a contractor. You have NO protection, however, when the contractor lies.

Check with your homeowner's insurance agent.

[Tim Fischer]

I believe you are thinking of a "lien release". This is provided by the contractor after performing the work, releasing you from any liability that subcontractors might have against your finished job once you've paid the general.

-Tim

[John Ross]

You want to make sure his license is active, he is bonded, has liability and worker's comp insurance. If he's "not thrilled about telling you", don't even think about hiring him!

To find out this information, you can call your state's contracting licensing board. They might have a website that will give all this info too. Make sure you call them and confirm his status before work begins.

-- John Ross

[Al Bundy]

"John Ross" wrote in news: [e-mail]:

Had a contract to build a house once. I read shit I sign. When I returned it to them there was a burried line in there crossed out that the purchaser would maintain insurance. I asked what that was in there. Reply was something to the effect "Huh? . That souldn't be in there." I should have dumped the sneaky low life right then and there but was too deep into things.

[MLD]

On a recent roofing job the (winning) contractor included with his estimate a copy of his insurance and liability coverage when his men would be on the job. MLD

[roger61611]

MLD is corrrect, anybody who is in the business for real will have insurance, and they will have their carrier send proof thereof to you. You want to know that they are insured in case somebody falls off a ladder and paralyzes themselves.

Never let anyone work on your house without first understanding liability.