Home Improvement Projects: Protect Yourself When Remodeling

Real estate prices nationwide have seen a decline recently. Many home owners have plans for a remodeling project in the near future to increase the chances of selling their home or simply to enjoy their living environment more. Whatever your goals, follow a few simple steps and you can make your next remodeling project a success.

While most licensed contractors are reputable professionals and strive to do the best job possible, there are others who lack the necessary skills or expertise in business matters to insure the successful completion of your project. Less reputable contractors may try to sell you services or materials you don't need and may be financially unable (or unwilling) to resolve a dispute should it arise.

Research

The first step to selecting a contractor or tradesperson is to research your remodeling project. You must be knowledgeable about what the job involves, the necessary materials and the steps needed to complete the project. The web is a great place to start. There are many useful websites with tons of free information. Use a search engine such as Google to find information on type of project you are considering. You will be amazed at all of free information available on the Internet.

Permitting

Depending on the type and size of the project, you may need to contact your local building departments to find out what building permits are necessary and what your legal obligations are regarding obtaining and posting permits on the job site. Once you have knowledge of the requirements, most licensed contractors will handle the permitting is process for you.

Ask for References

Ask around for references and get two or three estimates. Talk with your friends, co-workers and neighbors for recommendations. When interviewing contractors, ask for names and addresses of previous customers and check with those references. Ask for a copy of their license. Sometimes, the Better Business Bureau maintains records describing whether the company has a number of consumer complaints.

Insurance

Talk with your insurance agent or company about the extent of your coverage during the remodeling project. Before you even begin the project, you should review your policy for weather and water damage, theft, fire and other types of coverage. During the remodeling project, most policies will only cover building materials, so make your contractor be responsible for all products and materials until that time. Additionally, you should be insured for the cost of the construction before any renovations begin and make certain that your home is currently "insured to value."

Hiring a general contractor or a tradesperson brings other risks. Two types of coverage are carried by reputable firms or individuals: worker’s compensation and general liability. Discuss the importance of these items with your insurance agent to gains his or her opinions of the applicability of these insurance products to your particular situation. Check with the contractor your select to make sure their insurance is current and also make sure they carry adequate coverage.

By doing your homework and following the simple steps above, you can increase the likelihood that your next remodeling project will be a success.