As a Colorado homeowner you will have various residential contractors come to your house for many different services. These services range from simply washing the windows to adding the deck in the back. Most consumers will ask these various contractors if they are insured and take their word for it. Since 2010 the cost of insurance for Colorado residential contractors has risen significantly and these increases could lead a contractor to drop coverage in order to save money.
We highly recommend that you always ask the contractor for a certificate of insurance. This certificate will list the kinds of insurance that are in place, the amount of insurance, the insurance company and the policy period. Our insurance agency processes hundreds of these requests throughout the year. A reasonable expectation for the certificate to be processed and sent is 24 to 48 hours after the initial request. If the contractor is using sub contractors, we also recommend that you request certificates of insurance for each sub that the contractor is utilizing.
Have the insurance company email or fax the copy of the certificate to you directly. This way, you are assured that the policy is current and in force.
Lastly, we recommend that you request this information during the bidding process. Finding out your contractor is not insured on the day the project starts is an unnecessary complication. Your house is most likely the biggest investment you will ever make. It’s important to have the proper protections in place in case the unthinkable happens.
If you have any questions on your current insurance policies or anything insurance related please do not hesitate to contact us.
Thank you for your consideration.
The Orcutt Group Team