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 Remodelling 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.