Why would your home insurance agent in Waukesha need to know your plans to call the plumber? In most cases, this is not necessary. If you have a leak or you need to handle a running faucet, you may not need much help from our team. But, here’s a scenario that’s much different.
A homeowner is working to install a new bathroom in her home. She calls a plumber, works out a plan, and makes a deposit. The plumber arrives, and the work gets started. Then, a problem happens. A water main breaks, water floods the home, and an employee suffers an injury. When a situation like this happens, you know to take immediate action to help the person hurt. But, when the dust settles, who pays for the losses?
In some cases, this could be you, the homeowner. For this reason, we encourage you to contact your home insurance agent first before you decide to bring in any contractor for any type of large-scale project. This includes home improvements, plumbing, electrical, landscaping, roofing, and much more.
How to Prevent Being at Risk
It is always important to be proactive when it comes to investing in home insurance. It is also important to know your contractor. Our team can help, but to get you started, consider these steps to ensuring you hire a contractor with proper coverage.
#1: Ensure They Have Commercial General Liability Coverage
In the above situation, liability insurance could help you. It may help you to recover some of the losses you have as a result of the damage from the water. Keep in mind this type of insurance is not one you buy, but the company needs to have.
#2: Be Sure Their Employees Are Protected, Too
Contractors who hire employees in Wisconsin must have proper workers’ compensation. In our state, any company with three or more employees needs to have a specific workers’ compensation policy. It helps pay for the injuries workers suffer on the job. This coverage could reduce your responsibility in an accident like this.
#3: Other Insurance May Be Best
Depending on the type of work you are having done, it is important to consider Builder’s Risk insurance. This type of insurance provided by the contractor may help cover some of your risks for large-scale projects if the company makes a mistake, putting your property at risk. Commercial auto insurance may help in some situations as well.
#4: Gather Information From the Contractor
It’s always important to know the contractor well before hiring them. Learn about the company’s reputation. Find out if others have filed complaints against them (numerous online sites can offer reviews for you to view). And, be sure to ask to see the company’s Certificate of Insurance. This gives you insight into what type of coverage the company has.
#5: Update Your Existing Policy
The final step is to give us a call at Carrigan Insurance. Your home insurance agent in Waukesha is here to help you verify the type of coverage the contractor has. But, that is not all we need to do for you. We also need to make sure the improved value of your home – with your new bathroom, for example – is included in your existing home insurance policy. It only takes a few minutes to verify this information.
Hiring a contractor can be a good move, but knowing what type of coverage the company has is even more important. Let Carrigan Insurance offer some help to you in this process.
