How Do I Verify a Restoration Contractor's Insurance?

Before any water damage work begins, request proof of insurance from the pros. This one-page document lists the policy types, coverage limits, and the effective dates. It should name the business exactly as it appears on your contract. If the name does not match, ask for a corrected document.

The proof should show general liability coverage and workers' compensation. General liability covers damage to your property, while workers' comp covers injuries to workers on your property. If a worker gets hurt and the pros lack workers' comp, you could face the medical bill. Verify both types are listed and current.

Even with valid proof, there can be gaps. For example, if the pros hire subcontractors, those subcontractors need their own insurance. Ask who will be on the property and verify each worker is covered. Also, check if the policy has a deductible that might affect you.

Some policies have limits that are too low to cover major damage. Ask the pros for the coverage limits in writing. If a claim exceeds the limit, you could be responsible for the difference. Compare the limits with the potential cost of the restoration work to ensure adequate protection.

If the pros cannot provide valid proof of insurance or the insurer cannot confirm coverage, do not hire them. Working without insurance is risky. You could be liable for injuries or additional damage. Take time to find another professional who can provide proper documentation.

Ask for references or examples of similar work, but remember that word-of-mouth is not a substitute for verified insurance. Also, check if the pros have any complaints with your local consumer protection agency. For more guidance on handling water damage claims, see the related pages on this site.