Your home insurance is one of the most valuable tools you have to protect your largest asset, but it may not provide coverage for all the types of losses your property could face. Take a close look at your policy to know what specific types of coverage are provided and what may be excluded. Studying your policy is the only way to know for sure what you can expect from this coverage. But, will your home insurance cover the poor work a contractor did that left you with significant repair needs?
If you’ve hired a contractor to do any type of work on your home, one of the first steps you should take is to ensure that that individual or company has ample coverage in place to protect you. Learn if the company is licensed, insured and bonded. This type of coverage—provided by the company, not by you—can give you the help you need in situations such as these. That is why many people are warned not to work with a contractor who cannot display proper licensing, insurance coverage and bonding proof.
Home insurance may cover accidents that occur. If the contractor accidentally causes damage to your home, such as catching something on fire, your home insurance policy will likely help cover these repair costs. Your insurer will probably try to get the contractor’s insurance to pay for the damages; however, this is the extent of coverage provided by your home insurance.
If poor workmanship occurs, such as improper methods used to install insulation in your home, your home insurance is not going to be able to help. Most standard home insurance policies contain exclusions for inadequate workmanship or faulty workmanship. If this happens to you, you will need to turn to the contractor to have that person or company cover these losses.
In all cases, having the right home insurance policy can help. Homeowners insurance can be extended to cover such risks, but only if you specifically add this type of coverage to your plan; it is not considered a standard option. The good news is that your contractor’s coverage may step in to cover your losses.
Know the details of your policy. Call Halkos Insurance Agency at 301-206-5464 for more information on home insurance.