Remodeling is a very worthwhile but normally expensive process that is not free of risk. While the end results make it all worth it, there are plenty of things that can go wrong during the remodeling process. For this reason, to protect the homeowner from being on the hook for lots of money it is important to make sure you are fully insured in case something goes horribly wrong.

In case of accidental injuries it is important that your contractor has liability and workers compensation insurance. As a homeowner, make sure you contact your insurance agent and verify that you will not be held responsible for any issues. Sometimes when remodeling the insurance only needs to be increased to cover the new value of the house, other times the improvement will need to be listed on the insurance. It is also worth asking if you are covered in case of theft of materials during the job. Your contractors insurance may cover this, but as a homeowner it is still worth asking. Insurance may cost some money, but it is a lot cheaper than repairing large portions of your home would be.

If a worker is injured on site and the contractor does not have sufficient insurance then the homeowner could be sued. In the case of building damage, if the remodeling work were not covered by the homeowners insurance then the homeowner would have to foot the bill for any work that needed doing to repair the damage. It is still worth checking your insurance even if you have a great contractor incase they find pre-existing damage to the property while doing the remodeling project. If all goes according to plan and nothing goes wrong then the insurance will not be needed and you are very lucky. However if something unplanned occurs it is a lot of money on the line if you are not properly insured and protected.