How to protect yourself when hiring a contractor

Having a home built is a milestone in a person’s life. It is exciting, stressful, overwhelming and fun all at once. Whether you’ve had a home built before or this is your first experience with new construction, it is in your best interest to protect yourself when hiring a contractor. Here are some tips to make this happen in Melbourne, Florida.

Before you lay pen to paper and sign a contract, ask the contractor for a certificate of insurance. You don’t need to see a policy from the contractor, but a certificate of insurance can make you feel at ease during the relationship. A certificate of insurance shows you proof of the contractor’s current coverage. All they need to do is ask their insurance agent for this document.

Almost every contractor will employ others to work with him or her or for him or her on the job. If this is the case, ensure that the contractor has workers’ compensation coverage for those workers. You do not want to wind up the defendant in a workers’ compensation lawsuit when it should be covered by the contractor.

If subcontractors are hired to work on the house by your contractor, make sure you get certificates of insurance from all of them as well. If they cannot, or do not provide you with this document, do not let them on your property.

Before you sign a contract think about adding wording that will protect you should the contractor lose his or her insurance prior to the job starting. The wording should note that if the contractor fails to keep their insurance, he or she will be terminated from the project and you will be refunded in full for all payments made up to that point.

Never let a contractor tell you how insurance should be handled when building a home. If you have any doubts, contact your insurance agent and your attorney to review all of the documents.

Are you having a home built in Florida? Protect yourself from shady general contractors by speaking with our firm today.