Do I Need to Secure Contractors Insurance When I Have My Home Renovated? 

Renovating your home can be an exciting and rewarding project. However, any time you make structural changes to your residence, you must account for risks and exposures. If you’re hiring a contractor to work on your home, you’ll need to be diligent in considering possible incidents and understanding your insurance-related obligations. At Affiliated Agency of Ocala, we’re well-positioned to help homeowners in the Ocala, FL area understand and fulfill their coverage needs.

What are My Responsibilities as a Homeowner?

As the homeowner, you should prioritize making sure that adequate insurance is in place before work on renovations begins. Specifically, you’ll likely want to check that contractors are covered by general liability, workers’ compensation and builders risk insurance. If contractors working on your renovations are uninsured or underinsured, even minor incidents could impose significant delays and losses for which you could be held liable.

When is the General Contractor Responsible for Insurance?

General contractors are typically required to carry their own insurance. For example, in Florida, the law states that general contractors with employees are required to carry workers’ compensation insurance and general liability insurance. Before signing an agreement with these businesses, you should request a Certificate of Insurance from their carrier to verify active and appropriate coverage.

How are Subcontractors Covered?

If your renovation project requires additional assistance from subcontractors, you should also check that there’s suitable coverage in place for such parties. Subcontractors may be covered under a general contractor’s policies, but this is not always the case. You should confirm that subcontractors either have their own policies or are insured by the general contractor.

We’re Here to Help

At Affiliated Agency of Ocala, we understand coverage needs related to home renovations. Reach out to one of our knowledgeable agents today to discuss your coverage options and verify that appropriate insurance is in place.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.