When embarking on a home renovation, most homeowners have their sights set on the outcome they’ve long dreamed about, as they should. A word to the wise — don’t let your vision impede your ability to do your due diligence when it comes to understanding insurance, both the contractor’s and your own homeowner’s policies. Be aware of the many potential risks.
Imagine a neighbor stopping by to see the progress of your endeavor. He is curious to check out your new second floor deck area, but loses his footing and falls to the ground due to a yet-to-be finished railing. Or, your daughter has a friend over and they play too close to the construction area, which leads to a serious injury from exposed nails. Who is responsible? How will these injuries be dealt with and compensated?
Accidents happen and personal injury claims could wind up costing hundreds of thousands of dollars when you consider medical bills, disability, property damage, lawyer fees and much more. Why take the chance and assume this risk?
Your contractor must be covered properly should any of these accidents occur, and the onus is on the homeowner to make sure this is the case. When researching potential contractors, one of the most essential questions to ask should be about insurance coverage. The time to understand your contractor’s policy is prior to work commencing. Many fly-by-night contractors are under-insured or not insured at all and, while they may quote your job for less, if an accident occurs, you could be liable for an exorbitant amount of money.
Not only is it sensible to understand your contractor’s insurance, but you should become familiar with your homeowner’s policy as well. Property loss and destruction can range from thousands to hundreds of thousands of dollars. You might think you’re covered and you may be, but for what? Does coverage include things like replacement of custom materials or standard?
Weather disasters are far too common in Dallas. Imagine a tornado sweeps through town causing a large tree to crush your roof, tearing into your master bedroom. The damage could be extensive. You will want to hire a contractor immediately to remove the tree and repair your home before additional destruction occurs. Understanding your insurance policy for property loss or destruction prior to an emergency is critical. If you want your home repaired with the same materials, you may be in for a shock if you didn’t realize your policy only covers restoration with common, basic materials. You may be out of pocket to cover that difference and you won’t want to waste time disputing costs and materials with your insurance company while your home is in limbo.
You will find excellent information about Homeowner’s Insurance and Texas Homeowner Policies on the Texas Department of Insurance site here. Generally, “Homeowners insurance pays to repair or replace your house and personal property if they’re damaged or destroyed by an event or occurrence covered by your policy,” including areas primary dwelling, personal property, other structures, personal liability and medical expense. However, homeowner’s policies typically don’t cover things like theft of uninstalled construction materials, construction worker’s personal injury, and damages to your home as a result of construction activities. No two policies are alike and it benefits you to know the details of your individual coverage.
Your contractor should be your first line of defense against any claims, personal or property, that occur during your remodeling project. For peace of mind, make sure to hire a contractor who has adequate insurance.
Since 2002, CB Construction has maintained an outstanding reputation as a full-service design-build firm, and every project we undertake is covered by our $2 million General Liability policy. The Texas Department of Insurance has detailed information explaining Commercial General Liability (CGL). This type of insurance protects against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising). Additional coverage for premises and products including completed work pays for bodily injury or property damage should an accident or damage occur. No doubt, insurance policies can be confusing and feeling confident that your contractor is adequately insured is critical.
We are dedicated to our clients and their projects when it comes to service, quality, communication, timeline and budget, with an overarching focus on keeping everyone involved safe throughout the process. This is how we have been able to build solid, lasting relationships with our clients. Call us today at 214.773.5566 — we look forward to working with you on your next remodeling project.
If you have any questions, please don't hesitate to call or email me.
5711 Mercedes Avenue
Dallas, Texas 75206