Insurance for Residential Remodelers

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Why Residential Remodelers Need Insurance?

Customers hire remodeling contractors to complete various home improvement projects including renovations, additions, and other handyman projects. They trust you to treat their home repair project with integrity and create a result they are proud to show their family and friends. As a home improvement contractor, you need remodeling insurance to protect from lawsuits that can cause financial hardship.

Businesses that fall under this industry include remodeling construction, for-sale remodelers, remodeling design-build, and remodeling project management firms. Their services include additions, alterations, reconstruction, maintenance, and repair of residential buildings.

Risks Residential Remodelers Could Face

Going into customer homes increases the number and severity of the risks you face daily. A few of these risks include:

  • Property Damage: Residential remodelers use a lot of materials, tools, and equipment for home repair projects. Sometimes it requires the art of balancing on ladders to get the job done. It is easy in the moment to take a wrong step and have a piece of wood or drywall fall and damage the customers artwork or furniture below.
  • Faulty Materials: To successfully complete a home repair project, you need the best materials. You don’t control the quality of those materials though. Even if you use the same materials for every job, and on one occasion they cause damage to a home, you can be held responsible.
  • Injury: Whether it is employees, customers, or visitors to the home, accidents can easily happen on home repair construction sites. When they occur, you are financially responsible for the individual’s medical expenses and any lost wages for time off of work.
  • Employee Theft: Just like homeowners trust you; you trust employees. Occasionally employees are tempted to take items that aren’t their own. When a homeowner identifies the theft, they will contact you looking for answers and replacement of their property.
  • Auto Accident: Auto accidents occur on the road and at the job location. If you are trying to back your truck into the driveway and back into the owner’s car instead, you will need to pay to replace or repair it.

Types of Coverage Residential Remodelers Need

Every business needs the typical insurance coverage like general liability and commercial property. As a home improvement contractor, you need more insurance protection. Your customer’s home insurance coverage won’t pay for the mistakes you make or damage your services cause.

  • Crime: Protects your business from the financial hardships caused by theft including employee theft.
  • Surety Bond: If you outsource your work to contractors, a surety bond protects you in the event they don’t fulfill their part of the project. It pays the costs associated with this instance including finding a new contractor for the job.
  • Business Auto: Pays to repair your business vehicle or a third party’s damaged property when you are held liable for an auto accident.
  • General Liability: Pays costs that arise from a third-party injury, property damage, or personal injury. It also includes defense expenses.
  • Commercial Property: Protects your finances after business property is stolen or destroyed in a covered event. This includes commercial property, business property at the location, and business interruption insurance.

How Much Does Residential Remodeler Insurance Cost?

Insurance companies look at home improvement contractors differently. The majority will want to know your history in the field, previous claims history, safety precautions, and hiring procedures before quoting your remodeling contractor insurance. You can receive a quote online by completing the insurance quote form below.

$42
Minimum monthly cost
for low risk businesses
$55
Median monthly cost
for average size businesses
$76
Average monthly cost
for average size businesses

What type of insurance does this industry need?

Policy What is it? Why get it Popularity in your industry Want free quotes?
General Liability
This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

What is it: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy.

Why get it: General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

Professional Liability
This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to a mistake or error made in a professional capacity. Your business may have contracts with clients or partners that require Professional Liability coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, Professional Liability coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

What is it: This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to a mistake or error made in a professional capacity.

Why get it: Your business may have contracts with clients or partners that require Professional Liability coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, Professional Liability coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

Workers Compensation
Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

What is it: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work.

Why get it: Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

Inland Marine
Inland Marine insurance covers goods in-transit either on land or through shallow water, as well as certain types of movable property (such as medical equipment). If your business has valuable equipment which regularly needs to be moved, then this can be a core policy to protect your property.

What is it: Inland Marine insurance covers goods in-transit either on land or through shallow water, as well as certain types of movable property (such as medical equipment).

Why get it: If your business has valuable equipment which regularly needs to be moved, then this can be a core policy to protect your property.

Commercial Auto
Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage. Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.

What is it: Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage.

Why get it: Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.

Umbrella Insurance
Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits. This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.

What is it: Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits.

Why get it: This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.

Errors & Omissions (E&O)
This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to an error or omission on your part. Your business may have contracts with clients or partners that require E&O coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, E&O coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

What is it: This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to an error or omission on your part.

Why get it: Your business may have contracts with clients or partners that require E&O coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, E&O coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

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