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The liable party when a contractor damages your home

Allstate’s website says that if a contractor damages an individual’s home, the homeowner’s insurance policy helps to cover the cost of repairs. Even so, there are some things the insurance company may deny payment for.

Allstate identifies poor workmanship as one of the top reasons. Instead, the homeowner may need to seek redress through the contractor’s liability insurance plan. Unfortunately, not all contractors keep their insurance up to date, which only further complicates things.

Tips to avoid insurance disputes with either carrier

Allstate provides tips to help homeowners reduce or eliminate the risk of running into problems with either their own insurance carrier, the contractor’s carrier or an uninsured contractor:

  • Ensure the contractor carries adequate and up-to-date insurance before allowing them to begin working on the house.
  • If the contractor completes poor work on the house that leads to damages, seek compensation to get the work re-done from the contractor.
  • In some cases, homeowners may also seek assistance to get help with repairs to damages caused by the poor workmanship but not the cost of actually redoing the work properly.
  • Update coverage limits to ensure the coverage extends to any additions or meets any new property values caused by renovations.

When the home is a condo

When people live in a townhome or condo, the insurance and compensation process can become even more confusing. One New York Times article explains that if a tenant hires a contractor that causes damage to the building, the owners or managers may seek compensation from the individual who hired them.

When it comes to contractors who work consistently with the building, the building may have special requirements. It may make it mandatory for contractors to add the unit owner and the building itself as “additional insured” on the policy. This may offer some protection for damages.

All of these considerations make insurance defense a complex field. When real estate and construction considerations get lumped into the mix, it can become even more frustrating. Because of this, many homeowners turn to professionals to help them navigate any claims that need to be made.