Don't Get Blindsided on Insurance Coverage!

Insurance confusion is another area where homeowners become blindsided. Most homeowners assume that a contractor has all of the proper insurances needed to cover any  type of incident that may happen while they are on the job, but that’s not always the case!  Here are the two types of insurance you should be sure that your contractor has before setting foot on your property:

Liability insurance: This is how you will be reimbursed if there is damage that occurs on your property during the course of construction. Any contractor who is registered in the state of Pennsylvania is required to carry at least $50,000 in liability insurance, although the Pennsylvania State Attorney General recommends hiring a contractor with at least $750,000. That’s quite a big discrepancy, so it is important to air on the side of caution and choose a contractor with more coverage, rather than less. We actually recommend choosing a contractor with $1,000,000 in coverage, since in the event of a total loss of property, you want your contractor to have enough insurance to cover all of the damages that have occurred. 

Save yourself headaches by verifying adequate insurance coverage.

Worker’s Compensation Insurance: This type of insurance is required by law, and its purpose is to protect both the homeowner and the employee by covering the expenses of the injured worker in the event of an accident .  Although it is required, it is expensive, and many contractors skirt around the issue by hiring workers and paying them under the table. This can be extremely risky for you as a homeowner, because in the event that an uninsured worker is injured on your property, they can sue you for medical bills, lost wages, and even death! Yes, the probability is low, but the risk is high! Don’t expect your homeowners insurance to cover this type of injury either; in general most policies will not cover this because they have no way to verify whether you have hired a competent contractor to work on your home. To avoid a catastrophe like this, make sure that each person who steps onto your property is covered by Worker’s Comp. Ask the company that you are dealing with to put it in writing that everyone working on your property is covered by Worker’s Comp Insurance. Don’t just ask if employees are covered, ask about everyone that will be on the property, because some contractors will show homeowners paperwork stating that employees are covered, when in reality the people doing the actual work on your home are subcontractors, not employees.   If the contractor is not willing to sign off on this important issue, more than likely you will have uninsured workers on your property.

Avoid Getting Ripped Off on Replacement Windows, Entry Doors and Roofing.

Right up there with visiting the dentist and tax preparation, shopping for home improvement services is one of the most dreaded tasks a homeowner takes on. The Better Business Bureau of Western PA receives approximately 9,000 complaints each year on over 151 different industries.  The shocking part? 25% of those complaints are about the home improvement industry! In addition to that, nationwide, over 52% of homeowners say that they were dissatisfied with the worked done by their contractors. How can you avoid being dissatisfied? Don’t get blindsided! The next few posts will point out areas where homeowners are blindsided and what to avoid.

Being Blindsided #1 Homeowners Don’t Know What They Don’t Know

Most homeowners focus on the product being sold rather than the company that is doing the work. While it is important to have a quality product, even the best product on the market will fail if it is not installed properly. Not only that, but in almost every case, improper installation will actually void your warranty. That is one reason that it is so important to choose a company with trained and qualified employee installers. Many companies have their products installed with sub-contractors who are paid for each piece they install. This can cause a problem when the subcontractors are rushing through your job to get to the next one to maximize their profit potential in a day. Employee installers are typically knowledgeable on the product and since they get paid by the hour, not by the piece, they are more likely to put the time and care needed into your project, particularly because they usually have the company’s reputation to protect.

Another factor that you might not consider when searching for a contractor is continuing education. Homes today are not built they same way they were 20 and 30 years ago. Advancements in building materials and techniques have made homes more air-tight and susceptible to mold and moisture build up then they used to be. This is especially important when investing in a new roof, as attic ventilation has become a critical component of any new roofing job. If the roofing contractor you are thinking of hiring is not discussing roofing ventilation, start looking for someone else.  Choosing a contractor who is using out-dated methods and does not make the effort to continue to educate themselves on industry innovations can lead to major problems down the road.

Finally, with so many home improvement companies utilizing subcontractors for their installation, do you really have a knowledgeable crew working on your house? These workers are often paid under the table and work on a temporary basis, meaning that when the work is gone, they are too. Again this is the type of situation that leads to shoddy work and installation defects. Don’t let this happen to you. Ask your sales consultant about the experience and work history of the people installing your products. If they can’t tell you anything about the workers, that could be a sign that they are using sub-contractors.