Hiring a contractor comes with several risks, including subpar workmanship, delays, and budget overruns. Research, vetting, and knowing your state’s contracting requirements is a must.

In New York, there is no uniform state mandate for general liability insurance for contractors: local rules vary based on your county and city. Additionally, contractors with employees must secure workers’ compensation insurance, while those without employees can receive exemptions from this requirement.

Consider these seven fundamental recommendations when hiring a contractor for your home repairs:

 

No. 1: Seek recommendations. Tap into your personal network. Family, friends, co-workers and neighbors can be excellent resources for finding experienced, professional and reputable contractors.

No. 2: Request a written estimate. Any verbal offers or promises must be backed by a written estimate, detailing the breakdown of costs for labor and materials. Contractor estimates are typically free, so contractors charging for an estimate should be avoided.

No. 3: Gather multiple estimates. Get at least three quotes and references from previous clients: then, compare all your options, looking at the price and quality of work.

No. 4: Verify license and insurance. Ensure the contractor is legally licensed, bonded and carries adequate insurance, including workers’ compensation and general liability insurance. Request to see certificates of insurance as proof and have our agency review them, too.

No. 5: Check their track record. The Better Business Bureau can reveal if complaints have been lodged against contractors; online reviews can reveal grievances and insight into their professionalism.

No. 6: Resist large upfront payments. A common practice is to pay a third of the total cost upfront. Demands for full payment before work commences is a red flag.

No. 7: Meticulous contract review. The contract should detail the scope of the work, timelines, payment schedules and warranty details. It should include a hold-harmless clause to protect you against liabilities arising from the contractor’s operations, and it should name you as an additional insured. Get a copy of the certificate of insurance—and forward it to our agency, so we can review it. Additionally, an attorney should review any contract you receive before you sign it.

To safeguard your house’s value, selecting the right contractor is paramount.

Before you do any home improvement, give our agency a call. We can review your current policy and offer recommendations to help cover the new additions and possible new value of your home.