Does Homeowners Insurance Cover Damage Caused by a Contractor?
Updated: July 31, 2024
Advertising & Editorial Disclosure
When a contractor damages property during their work, homeowners insurance can sometimes cover the cost of repairs. However, coverage often depends on the specifics of the incident and your insurance policy. If a contractor damages your property during their work, document the damage thoroughly and report it to your insurance company promptly.
Homeowners insurance may cover accidental damage caused by a contractor but not poor workmanship.
It's crucial to document any damage caused by a contractor and notify both the contractor and your insurance company immediately.
Ensuring contractors have liability insurance and performance bonds can provide additional protection against damage and poor workmanship.
Homeowners insurance typically covers damage caused by contractors, but what's covered depends on the specifics of your policy and the nature of the damage. Most standard policies include provisions for accidental damage caused by a contractor while they are working on your property. However, your insurance may not cover damage due to poor workmanship or intentional acts.
When hiring a contractor, it's important to verify their insurance coverage to ensure they have liability insurance. This type of insurance protects you if the contractor accidentally damages your property. Always ask for proof of insurance before any work begins. Ultimately, who is responsible for damage caused by a contractor often depends on the details of both your homeowners insurance policy and the contractor's liability insurance.
Dealing with property damage caused by a contractor can be challenging, but knowing what to do can save you time and stress. Following these steps can help the process and improve your chances of having the damage fixed promptly.
Take clear, high-quality photos of the damage from multiple angles. Write detailed descriptions of what was damaged and how it happened, and gather any witness statements. This documentation will be essential when dealing with the contractor or your insurance company.
Inform the contractor about the damage as soon as possible. Provide them with the photos and descriptions you have collected. Discuss the issue calmly and ask them how they plan to address the damage. Reputable contractors will usually take responsibility and offer to fix the problem.
If the contractor damages your property and is uncooperative or denies responsibility, contact your home insurance company. Report the damage and provide all necessary documentation. The best homeowners insurance companies will guide you through the claims process and determine if your policy covers the damage.
Follow the procedures outlined by your insurance company to file a claim. Work closely with the claims adjuster and provide any additional information they may need. Ensure there is no lapse in coverage so that your property remains protected during the resolution process.
Legal advice may be necessary if your insurance claim is denied or the contractor refuses to accept responsibility. Consult a lawyer specializing in construction or property damage to explore your options. Legal action can help you recover costs and ensure the damaged property is repaired correctly.
As a homeowner, you have the right to expect quality work and can take action if you encounter poor workmanship. Consider taking some of the following steps if you experience poor workmanship:
Request Corrections
Contact the contractor and formally request that they fix the issues. Document all communications and specify the problems that need addressing to ensure there is a clear record of your requests.
File a Complaint
A consumer protection agency or your state's licensing board can help you if the contractor fails to respond or refuses to fix the problem. These organizations can investigate the issue and take disciplinary action against the contractor.
Seek Legal Advice
Consult with a lawyer specializing in construction law to discuss your legal options. A lawyer can help you understand your rights, draft a demand letter or represent you in court if necessary.
Consider Arbitration
Some contracts include a clause for arbitration in case of disputes. If applicable, this can be a faster and less costly alternative to going to court, allowing for a resolution through a neutral third party.
Contractor insurance typically does not cover poor workmanship, as it protects against accidental damage and liability — not the quality of the work performed. Additionally, if a contractor's poor workmanship leads to further damage or issues, their insurance will likely not cover it.
Homeowners are responsible for ensuring contractors have a performance bond or warranty that specifically addresses workmanship quality. For significant issues, pursuing legal action or filing a complaint with a regulatory body may be necessary.
When dealing with damage or poor workmanship by a contractor, homeowners often have many questions — particularly about what their insurance could cover. Below are some frequently asked questions to help guide you through these situations:
Yes, homeowners insurance can cover accidental damage caused by a contractor, but it often excludes coverage for poor workmanship.
The contractor typically bears responsibility, but homeowners insurance may cover accidental damage. Verify both policies for more specific information about what they cover.
Document the damage, notify the contractor, contact your insurance company and file a claim if necessary.
It's possible to sue a contractor for poor workmanship if they refuse to fix the issues. Legal action may be necessary if other resolutions fail.
Contractor insurance usually only covers accidental damage and liability, not the quality of the work performed.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
