I have other posts here about a roofing job we had done by a sleazy guy. Those were on the technical issues of a roof.

This is more generic / business / legal / insurance side.

He talked of his company being 'insured' and has has a certificate of insurance sent to us,.

We got the attached certificate.

Looking at it now, is this really worth anything?

The only thing they have is workers comp and EMPLOYERS liability. I called Hartford and they said that's kinda the same thing / has nothing to do with me.

What do you as a homeowner / property owner really need to worry about when someone works on your home? Things like:

That the guy falls off the roof and he sues you?
That they burn down the house and you / your homeowner insurance wants to sue the company?

What if the company is really just him and his wife & he gets day laborors to go on the roof? Or subcontracts to another company to actually do the work? Or he tells insurance company (to get a lower rate because the work is less risk) that all they do is dust / vaccuum at client locations (rather than 'we climb on the roof without harnesses')

Would you care? How would you protect yourself from those situations?

THANKS!

 

The contractor or his insurance agent needs to provide you a certificate of insurance covering general liability. Make sure the effective dates cover the time period during which the work will be performed.

 

It's good he has workers comp but the better contractors will have a general liability insurance. That way if their cigarettes burn your house down you're covered. Or if they put a nail through an electrical line or water line, it covers damages. With a roofer your main concern is him having the roof open and a 3 inch rain comes along and ruins all your ceilings. That's why you want a contractor to have liability insurance. Mine is 1 million per occurance. Some cities want a minimum of 2 million.

 

You are correct in being concerned as far too many contractors will avoid any expense they can. I'm not an insurance pro so I sat down with my home owners agent and talked about what they would cover and what they would not.

Your contractor needs to carry liability insurance for any damage he or his employees cause. Note I said "employees". Many contractors will claim their day workers are subcontractors but in fact they do not meet that definition. And if they did then THEY would need to provide certificates to prove they are covered.

They also need the worker comp in case they are injured on your property.

There are other policies like job performance but your agent would be the one to talk to.

There are also dollar amounts associated with insurance coverage and I believe you can have your name included on the policy so you are personally covered.

Bud

 

Would anyone know the legal name for a document the homeowner would want the contractor to sign / maybe even what it might say (although I can likely find it on the web once i know what it's called), that absolves both sides / closes out the contract even though the homeowner didn't pay the total amount in the contract?

ie the contract was for 4,000, but the $3,000 the homeowner paid will settle this / the contractor AND SUBCONTRACTORS accept that 3K as sufficient payment

And how do you know all the subcontractors that he might have used / how do you protect yourself from a sub saying they put a lien on your house 'cause the contractor that hired them didn't pay them?

THANKS!

 

I think you are referring to a Lien waver, stating that the contract is paid in full with no further claims. He would need to have any subs sign one, and give you a copy.

 

have the subs sign also - that's part of the issue with this. he says these are his own 'crew'. so how do I know they are really employees / day laborers / subs?

my contract is with him. a sub doing work at my house? I don't have any agreement with them anyway. you want to work at my house? sure! I'm not paying you / don't know who you are though.

 

I saw one sample online where the form the contractor signs has the original price, adjusted price paid, and in the fine print it says he has paid all of his subs for work done on your premesis. So it puts all liability on him if he hasn't paid them.

 

Yrs ago we painted a subdivision of duplexes. The builder quit paying at the end. My boss put a lien against the builder .... and collected a yr or so later. As far as I know no liens were placed against the duplexes or their owners.