Quote:
Originally Posted by retiredguy123
I agree with the lien release and possibly the bonding. But, my thinking on the insurance is that the contractor may have a liability policy to protect him against a mistake he may make. But, the homeowner cannot file a claim directly against a policy that is structured to cover the contractor only, especially if the contractor denies any responsibility or if the contractor disappears. It's his policy, not yours. Also, I have never seen a document that clearly proves that the contractor has paid for a specific amount of liability coverage that cannot be cancelled before the project is completed. I would agree with you if the contractor purchases a "performance" bond whereby the insurance company guarantees that a specific project will be completed or they will complete it themselves. That is what the Federal Government requires on their projects.
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Research online for insight as to why an insured contractor is important. If he is not a fly-by-night business, he will have insurance. If their occupation requires it, also look for licensing.