Will Homeowners Insurance Cover Damage Caused by a Contractor During a Renovation?

You hired a contractor to remodel your kitchen. Midway through the job, a pipe gets nicked, water floods the subfloor and the ceiling below caves in. Now you’re left wondering who pays for it. The answer depends on several factors, and knowing them before work begins can save you a lot of headaches.

What Counts as Contractor-Caused Damage?

Contractor-caused damage is any property loss that results directly from the work being performed. Common real-world examples include:

• A roofer accidentally punctures a water line, causing interior flooding
• A subcontractor drops equipment, cracking a structural beam
• Improper electrical work leads to a fire after the crew leaves
• Demolition goes too far and damages an adjacent wall or load-bearing support

In general, the damage need not be intentional to create a dispute over who is responsible.

What Does Homeowners Insurance Typically Include?

Homeowners insurance may cover sudden and accidental damage to your home’s structure and personal property. It may also cover your personal belongings and liability for third-party injuries and property damage. Standard policies usually include financial protection against events such as fire, storms or accidental water damage, but they often exclude issues related to poor workmanship, gradual wear and tear or maintenance problems. Coverage usually varies depending on the insurer and policy details.

Does Homeowners Insurance Cover Contractor Damage?

This is where things get complicated. Your homeowners insurance may respond to the resulting damage in some situations, but the contractor’s general liability insurance is typically the primary line of response. A contractor without adequate general liability or workers’ compensation coverage can leave you in a difficult spot. Before any renovation begins, ask your contractor for a certificate of insurance and verify that the coverage is current.

We’re Here to Help

Contact Amato Insurance Group before your next renovation project. Our agents can review your current homeowners insurance, identify any gaps and help you ask the right questions before a contractor ever sets foot in your home. We proudly serve homeowners in and around New Bern, Morehead

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.