(so your dream remodel doesn’t turn into a financial nightmare)
You’ve saved, planned, and finally green-lit that kitchen overhaul or primary-bath refresh. Now comes the riskiest step—and it’s not picking tile. It’s hiring the right contractor with the right insurance. In Georgia, one uninsured (or under-insured) crew can expose you to injury claims, property damage, liens, and delays that eat your budget alive.
Here’s a plain-English guide to vetting a contractor’s insurance the smart way—plus a checklist you can use before you sign anything.
“Licensed, Bonded, and Insured” — What It Really Means
Bonded and insured are not the same.
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Surety Bond (Performance/Payment): A bond is a three-party guarantee that the contractor will complete the job and pay subs/suppliers. If they walk or do sub-par work, the surety can step in or compensate (up to the bond limit).
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Insurance: Protects against accidents and lawsuits. If a worker gets hurt or your home is damaged, the contractor’s policies—not your savings or homeowners insurance—should respond.
Quick tip: A bond helps if the contractor fails, while insurance helps if something goes wrong.
The Minimum Coverage You Should Expect
Think in layers. For most residential projects, you want to see:
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Commercial General Liability (CGL)
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$1,000,000 per occurrence and $2,000,000 aggregate are common benchmarks.
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Includes Products/Completed Operations (problems that surface after the job is done).
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Watch for exclusions that don’t fit your scope (e.g., roofing, foundation, or residential exclusions).
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Workers’ Compensation
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Protects you if a worker is injured on your property. Without it, the worker (or their insurer) may come after you.
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Ask for proof even if the contractor says they “use only subs.” Subs need their own WC, too.
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Commercial Auto Liability
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At least $1,000,000 combined single limit for vehicles used to haul materials and equipment to your home.
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Umbrella/Excess Liability (nice-to-have on larger projects)
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Adds another $1M+ above the primary policies.
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Builder’s Risk / Course of Construction (project-specific)
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Covers materials and the work-in-place (fire, theft, certain weather). Sometimes carried by the homeowner; sometimes by the GC. Talk to your insurance agent before demo begins.
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Homeowners policy check: Call your insurer. Renovations can trigger coverage gaps (vacancy clauses, value changes). Ask whether you need an endorsement or a separate builder’s risk policy during construction.
Ask for a COI—But Make It Meaningful
A Certificate of Insurance (COI) is your proof. Here’s how to make it count:
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You as Certificate Holder: Your name and address appear on the COI.
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Additional Insured Endorsement: Request an AI endorsement in your favor for ongoing and completed operations (often CG 20 10 + CG 20 37 or equivalents). This gives you direct rights under the GC’s liability policy.
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Primary & Non-Contributory Wording: Ensures the contractor’s policy pays first.
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Waiver of Subrogation: Prevents the contractor’s insurer from turning around and pursuing you after paying a claim.
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Policy dates & limits: Verify they cover the entire project timeline with the limits you agreed to.
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Agent verification: Call the insurance agent listed on the COI to confirm the policy is active and check for pending cancellation.
Red flag: A contractor who “can’t find” their agent or delays sending a COI is telling you everything you need to know.
Don’t Forget Subcontractors (Your Hidden Exposure)
Most “GCs” rely on specialty subs (electricians, plumbers, roofers). Make sure the GC’s contract requires every sub to carry:
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The same liability, auto, and workers’ comp limits
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The same additional insured/waiver in your favor
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Hold-harmless/indemnification in favor of the homeowner and GC
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COIs from each sub before work starts
Your GC should collect and manage these documents. Verify in writing that they have them before the first hammer swings.
Contracts That Actually Protect You
Insurance is only half the safety net. Put teeth in your construction agreement:
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Detailed Scope + Change Orders: Define exactly what’s included. Require written change orders with cost and time impacts stated up front.
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Milestone Payments (Not Front-Loaded): Tie payments to completed, inspected milestones—e.g., rough-in, drywall, punch list. Hold a retainage (5–10%) until final completion.
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Lien Waivers: Require conditional lien waivers with each progress payment and final unconditional waivers at the end—from the GC and every sub/supplier.
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Permit Responsibility: The GC pulls permits under their license; inspections pass before payment.
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Insurance & Bond Clause: List the exact coverages required, the endorsements, and a right to stop work and withhold payment if coverage lapses.
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Dispute Resolution & Warranty: Spell out how disputes will be handled and what warranty applies to labor/materials.
Reminder: This is general information, not legal advice. For bigger projects, have a local construction attorney review your contract.
Quick Verification Checklist (Print This)
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☐ Copy of contractor license (if applicable) and photo ID
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☐ COI naming you as certificate holder + additional insured (ongoing & completed ops)
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☐ Workers’ Compensation certificate (not just a letter saying “not required”)
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☐ Commercial auto certificate
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☐ Umbrella (if project is large)
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☐ Builder’s Risk plan (who carries it) and confirmation from your homeowners insurer
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☐ Surety bond details (if required/desired)
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☐ Subcontractor COIs + endorsements, lien waivers process in writing
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☐ Payment schedule tied to milestones, with retainage
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☐ Permits/inspections responsibility assigned to the GC
Why This Matters When You’re Selling (or Plan To)
If you’ll sell your Georgia home in the next few years, buyers and appraisers will ask for permits, receipts, and warranties. Work done by properly insured, licensed professionals passes diligence more easily—and helps protect your resale value.
If you’d rather skip renovations altogether and sell as-is, Middle Georgia Cash Homes can make a fair, no-obligation cash offer with no commissions, no repairs, and a fast closing on your timeline.
Questions or want an as-is offer? Call 478-216-1795 .