Checking on home improvement contractor insurance before signing any contracts for work is common advice. But what exactly is this insurance and how can it help you?
What Is Home Improvement Contractor Insurance?
Contractor insurance is a loose term or a nickname for a bundle of several types of insurance and bonds that a contractor may carry or is required to carry in order to become and remain licensed with local authorities.
In addition, there is no single requirement for this home improvement contractor insurance. Home remodeling contractors are licensed or registered by states, counties, parishes, provinces, and even by cities. Currently, there is no U.S. federal regulation of home improvement contractors.
Types of Insurance Contractors May Carry
The Federal Trade Commission advises that your home improvement contractor should carry at least three types of insurance: workman’s compensation, personal liability insurance, and property damage coverage. Prior to signing a contract