homeowners beware!

In the past several years, I have had construction related claims submitted to my agency from our clients that have home insurance policies. The two I wish to share with you involve unlicensed and uninsured contractors. The first claim resulted from a general contractor replacing the windows on their hillside home. The general was licensed and insured, but the stucco contractor used to patch in the windows was unlicensed and uninsured and did not have workers compensation insurance. A worker fell off the scaffold in the back of the home and the fall resulted in medical bills, loss of wages, and pain and suffering. Law suits prevailed and the results did not favor the general contractor (who was also fined by OSHA) or the homeowner. The claims reported to the general contractors insurance and the property owners insurance were both declined. In the second example, the homeowner did almost everything right, but in an effort to wrap up the job sooner than later, they hired their own concrete former/ finisher. The general’s concrete guy was just too busy. The finisher who did the work ended up not having insurance or a license. Some years later the owner sold the home and shortly thereafter the concrete started to crack way beyond acceptable limits. The buyer sued the previous homeowner. The homeowner had no recourse against their general contractor since he did not hire the finisher and the homeowners insurance declined coverage as it was not an occurrence. So, I’m sure you are getting the picture here. Do not hired unlicensed or uninsured people to work on your home! It could have severe financial consequences.