Underground contractors can cost you everything

April 16, 2008 · Filed Under First Time Buyers and Home Maintenance · 1 Comment 

With the home renovation season upon us, you might be thinking of hiring a contractor. There are many reputable contractors in your community ready to do the work and willing to sign a contract to make sure both parties are satisfied when the job is done, and protected if something goes wrong.

Not all contractors play by the same rules, though, and if you get stung by one of these underground contractors, you could lose everything – your peace of mind, your savings, even your home. Sound serious? It is. As the owner of the property where the work is taking place, you are legally responsible and liable for any damages or injuries that occur on your property, regardless if someone else is doing the work. If that contractor becomes injured, or causes a life-threatening hazard due to sloppy work, you can be sued. A professional contractor is covered by his own liability insurance.
Without a paper trail - no contract, no warranty, no estimate or invoice - there is absolutely no record that the work was done, who did the work, or that they were even paid.

The contractor you hire should have the technical, business and interpersonal skills, the tools and the experience needed to do the job you want done. Hire a contractor who has experience with projects similar to yours. This contractor will know what materials and techniques are needed for your work; and even better, about problems with similar work — and how to solve them.

You want to find out as much as you can, so ask a lot of questions, such as:

  • How long have you been in business?
  • What work are you, or your subcontractors, licensed to do, e.g., electrical, plumbing?
  • What kind of work do you specialize in?
  • Have you done a similar job before?
  • Will you use your own crew for the work or will you subcontract all or part of the job?
  • How would you handle a specific problem related to this project (e.g., installing kitchen cabinets on your sloping floor)?
  • How will you deal with the health and energy efficiency aspects of the job?
  • How and when do you clean up, particularly fine dust?
  • What work schedule will you follow?
  • What kind of warranty do you offer and what does it cover?
  • Do you carry workers’ compensation and liability insurance?
  • Will you provide a written contract?
  • Will you take out all required permits (e.g., building, plumbing, electrical)?

Regardless of your approach to hiring a contractor, the most important fact to remember is…..do as Mike Holmes does “GET IT IN WRITING”

Tags: , , ,

House insurance when renovating

February 27, 2008 · Filed Under Home Maintenance · Comment 

Have you completed any major home renovations lately? If so, make sure you inform your insurance company. A recent survey showed that of those homeowners with home/content insurance who renovated their home or finished their basement, only 62 per cent updated their policies.
A renovation usually increases the value of your home and can require an increase in the amount of home insurance coverage you’ll need. Of course this will increase the price or your annual home insurance but don’t let that small increase stop you.

Think about it…if you spent $25,000 on a basement renovation without notifying your insurance company and your house caught fire a few months later, you might not have sufficient insurance to cover this loss. Be sure to protect your upgraded investment by remembering to update your home insurance coverage.

Tags: , , ,