You’re finally putting a new kitchen in your home. You’ve come up with the perfect design, picked your favorite colors, gorgeous fixtures, and spacious cabinets. The renovation is going well until the contractor makes a mistake and damages your property. Suddenly, your dream of a new kitchen goes down the drain.
When a home contractor causes damage during a renovation, it can be an expensive blunder that creates a complicated situation. Depending on the type and cause of damage, your homeowner’s insurance policy may cover some of the costs, though your policy may have limits and exceptions. The contractor’s insurance may also be held responsible for the claim.
Our skilled insurance adjusters can help. We can evaluate the extent of the damage and work with the insurance companies to settle the claim. However, here are some answers to commonly asked questions regarding damages caused by a contractor.
When Should I Contact My Homeowner’s Insurance Company?
Don’t wait for damage to occur to reach out to your insurance company. Before the first swing of a hammer, you should contact your homeowner’s insurance carrier to alert the company to your plans. The check-in will allow you to review any policy limits or items that are exempt from coverage.
A kitchen renovation, bathroom remodel, or addition to your home will also substantially increase the value of your property. To give yourself some peace of mind, be sure that the amount of the dwelling coverage on your policy matches the value of your home with improvements.
When your home is damaged, your insurance policy should cover the cost to repair it or rebuild it at the current-cost. This payout on a claim is limited to the amount of coverage you carry on your homeowner’s policy. If you add $50,000 of value to your home with a renovation but neglect to update your coverage, your house may be left underinsured.
Won’t My Contractor’s Insurance Cover Any Costs?
In addition to skills and reliability, you need to make sure the contractor you choose carries sufficient insurance coverage.
Confirm the coverage by requesting a copy of the insurance policy to review. A reputable contractor will carry both commercial business and general liability coverage. They should also have workers’ compensation insurance. If they don’t, and one of their employees is hurt working on your home, the worker could sue you for damages.
In general, if a contractor working on your home does damage, their insurance policy should cover repair costs. If your homeowner’s insurance covers any claims, your provider will turn to the contractor’s insurance provider to reimburse them for the costs.
What If the Contractor’s Work Is Not Up to Par?
If your dream project falls apart, there’s not much your homeowner’s insurance company can do. You will need to discuss any flawed products or faulty workmanship with the contractor. For example, if the cabinet doors in your newly renovated kitchen break and fall off, your homeowner’s insurance won’t cover the replacement or repairs cost.
When does your homeowner’s insurance kick in? Say your contractor does a poor job wiring the new light fixtures in the kitchen and the faulty wiring leads to a fire. As long as fire is a covered risk under your homeowner’s policy, your insurance will likely cover the fire damage cost.
What Happens If My Contractor Damages My Neighbor’s Property?
Yikes. If your renovation project leads to damage at your neighbor’s house, the next block party might be awkward. All joking aside, your neighbor would file the claim with their insurance company. Your neighbor’s insurance company will look to the contractor’s insurance for claims reimbursement as with your damages.
Should I Hire an Independent Adjuster?
If a contractor working on your property damages your home, your first instinct may be to file a claim with your homeowner’s insurance company. The company will take your information and likely send an insurance adjuster to check out the damage.
However, that adjuster works for your insurance company, so the company’s interests are their top priority. An independent adjuster hired by you will work for you. They will be concerned with your best interests and making sure the insurance company handles your claim fairly.
Contact Insurance Public Adjusters of Georgia
At Insurance Public Adjusters of Georgia, we can’t help repair damages to your home caused by a contractor, but we can help you work through the claims process to settle your claim in your best interest.
Before you call your insurance company, contact us.
When you authorize us to represent you, we’ll take care of filing your homeowner’s claim. We’ll conduct a property inspection to take pictures, document the damage, and provide a loss assessment. We’ll draft an estimate of damages and share it with your insurance company. We’ll manage the claims process for you, share any status updates, and forward payment once the claim is settled.
Call Insurance Public Adjusters of Georgia at 404-220-9366 for a no-obligation consultation at no charge. We’re ready to help get your dream home project back on track.
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Insurance Public Adjusters of Georgia
1100 Peachtree St NE, Ste 200a
Atlanta, GA 30309