As if homeowner’s insurance and supplemental disaster damage (for earthquake, flood, fire, and so on) weren’t pricy enough, you may be exasperated to learn that having renovations done in your home presents a whole new set of legal challenges in the way of liability. In truth, you could be held liable any time an outsider enters your home. You’ve no doubt heard of cases where criminals broke into properties, hurt themselves in the process, and then successfully sued for damages (or rather, sued and won an out-of-court settlement – offered no doubt to save the property owners the time and expense of a trial). Of course, you may be aware that most homeowner’s insurance policies include some personal liability protection. Unfortunately, this doesn’t usually include workers in your home.

Protecting yourself when renovating

The problem with having a contractor and his crew doing renovations in your home is that these people are considered home workers (rather than, say, guests). They are not technically employees in your home, like a nanny, for example, so you don’t have to arrange for workers compensation coverage. And most contractors carry their own liability insurance to cover themselves and any crew they bring with them. Does that mean you’re off the hook? No. There are two reasons why you may still want to look into additional liability coverage when you have contractors working in your home.

First, the policy your contractor has may be bare bones, meaning a worker who is injured on your property could still come after you for any medical costs (or even punitive damages) not covered under his employer’s policy. Second, some independent contractors have no insurance to begin with. If you fail to ask you could be on the hook for accident and injury costs. In truth you should request a printed copy of your contractor’s policy before any work begins so that you have legal grounds for a grievance should an injured employee come after you rather than seeking coverage under his employer’s plan.

So why is liability insurance important?

Well, for the reasons listed above, for starters. If anyone is injured on your property the insurance will cover part or all of the associated medical costs. However, a good policy will also cover your court costs should you be sued. In short, it will protect you financially in the event that a contract worker on your property suffers from an injury. So now that you’re convinced, how do you go about getting this coverage?

Again, you should ascertain whether or not your contractor already has coverage. If he doesn’t, you should probably go with another vendor. But even if he does and you still want some extra protection, start by talking to your current insurance provider to find out what your homeowner’s policy covers, if you can tack on additional liability (and if there are any restrictions on removing it once the work is complete), and whether or not a beefier umbrella policy is necessary. Then seek out liability insurance quotes from other providers to see if you can get more coverage at a better price or use lower numbers as leverage to secure a discounted rate with your provider of choice. Liability coverage is a good idea any time you have workers in your home, but it’s especially essential when they’re doing a dangerous job.

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