According to a survey conducted and published by a reputable source, about 8 buildings collapse in a year worldwide, and with each collapse approximately 38 people sustained fatal injuries.
Given the unprecedented nature of home remodeling projects, you must purchase the necessary home remodeling contractor insurance coverages before undertaking any rebuilding project. You never know, a plumbing contractor you hired might commit mistakes. The clients might sue you for incomplete work. Of course, you might be hired by a general contractor and face a breach of contract lawsuit.
Insurance can greatly help when you’re starting a home remodeling business or running an established one. Read on to learn about the must-have insurance for a remodeling business, their costs, and which remodeling insurance company you should work with.
|CoverWallet||NEXT (Best)||Thimble||Hiscox||The Hartford|
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$300,000/$1,000,000||$1,000,000/$2,000,000|
|Products and completed operations aggregate limit||$2,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Advertising injury coverage aggregate limit||$1,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Tenant’s legal liability coverage limit||$100,000||$100,000||$5,000||$100,000||$1,000,000|
|Waiver of subrogation included?||Yes||No||Included||Can be included||No|
|Hired/non-owned auto liability coverage included?||Yes||No||Excluded||Can be included||Can be included|
|Equipment breakdown floater included?||No||Yes||Yes||Can be included||Can be included|
This is an essential business insurance policy that protects you from third-party claims leveled against you due to your employees’ actions and your business operations. The costs covered by this insurance policy includes; third-party bodily injuries and property damage, advertisement injuries, reputational harm, and copyright infringement claims. Important to note is that this business insurance doesn’t cover any auto accidents, professional mistakes, theft, and damage to your business property or any work-related sickness and injuries to your employees. An insurer will not pay you if they find out the costs you are subjected to are a result of intentional or illegal acts done by you or your home remodeling employees.
There are two types of coverage limits under the general liability insurance for home remodeling contractors. The first limit is the per occurrence limit which amounts to $1M for one single claim. The second one is the aggregate limit which typically amounts to $2M for all the claims you ask for from your insurance within your general liability insurance for home remodeling contractors policy period. This policy period is usually 1 year.
When you are sued for third-party bodily injuries and property damages
When you are accused of reputational harm such as slander or libel
When your business is served with a lawsuit alleging it of copyright infringement
Completed operations coverage-in the event the work you did in the past or after the completion of a home remodeling project causes bodily injury or property damage, this add-on will protect you from any financial liabilities that you may be subjected to
Umbrella insurance-this add-on provides you with extra protection in the event your primary insurance gets exhausted or go beyond your available coverage limit
|CoverWallet (Best)||NEXT||Thimble||Hiscox||The Hartford|
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$1,000,000||$1,000,000|
|Name additional insureds?||Yes||Yes||Yes||Yes||Yes|
|Waiver of subrogation included?||Yes||No||Yes||Yes||No|
This business insurance policy is also referred to as errors and omissions insurance. Under this policy, you are covered from both alleged and actual claims arising due to your acts of negligence. Some of the acts of negligence you are covered against by the PLI for home remodeling contractors are failure to meet set deadlines, violation of terms and conditions of the contract, oversight in your service provision, and inability to meet the set standards of rebuilding/remodeling a home/house.
Your employees’ bodily injuries and other third-party bodily injuries, commercial auto accidents, and employee discrimination lawsuits are not covered by professional liability insurance for home remodeling contractors. Important to note is that criminal prosecutions or any other legal liability under civil law are not covered under this home remodeling insurance policy.
You should expect a minimum of $100,000 and a maximum of $1,000,000 as the coverage limit for professional liability insurance for home remodeling. How much your coverage limits will be is directly dependent on the type of operations your home remodeling company carries out and the level of risks it's exposed to.
When you are served with a lawsuit due to a breach of contract
When your client sues you for failure to deliver your services and also failure to meet the set deadlines for your home rebuilding project
Get all the best quotes from leading providers in a click of a button!
|CoverWallet||NEXT (Best)||Thimble||The Hartford||Hiscox|
|Building coverage limit (minimum)||$50,000||$340,000||$25,000/$500,000||$35,000||$25,000|
|Contents coverage limit (minimum)||$50,000||$35,000||$25,000/$500,000||$35,000||$15,000|
|Money and securities||Excluded||$2,500||$1,000||Excluded||Included|
|Lock and keys||Excluded||$2,500||Excluded||Excluded||Included|
|Business interruption floater||Excluded||Included||Included||Excluded||Included|
|Equipment breakdown floater||Excluded||Included||Excluded||Excluded||Included|
|Inland marine insurance floater||Excluded||Excluded||$10,000||Excluded||Excluded|
|Employee dishonesty floater||Excluded||$5,000||$2,500||Excluded||Excluded|
This essential remodeling contractor insurance protects you from financial burden in the event that your commercial building (whether rented or owned) and the contents in it get destroyed by the insured perils. Such perils include fire, vandalism, theft, and adverse weather conditions such as floods and windstorms. By purchasing commercial property insurance for home remodeling contractors, you are assured of the continuity of your business even when it’s faced with catastrophic disasters. The location of your business, its size, its estimated market value, the type of projects you undertake, and the safety measures you have put into place are some of the factors that a remodeling insurance company will use to calculate your monthly and yearly premiums.
The coverage limit for commercial property insurance for home remodeling contractors is approximately $1,000,000 for every single claim. This coverage limit is determined by the risks your home remodeling company is exposed to, the number of home rebuilding projects you undertake and the size of your company (whether it’s a small-, medium or large-scale home remodeling company).
When your home remodeling company’s assets such as owned or rented commercial buildings and office equipment and furniture gets destroyed by fire, floods and acts of crime such as vandalism and theft
Builder’s risk insurance-this add-on covers you from incurring any costs that may arise due to the destruction of the materials you use in your rebuilding activities or damage to the actual building under construction.
Business interruption insurance-this add-on ensures that you are compensated for your loss of income in the event that you are unable to perform your income-generating activities due to the occurrence of an insured peril.
|CoverWallet||NEXT (Best)||Thimble||The Hartford||Hiscox|
|General liability aggregate limit||$2,000,000||$1,000,000/$2,000,000||$1,000,000/$2,000,000||$1,000,000/$2,000,000||$300,000/$2,000,000|
|Commercial property coverage limit||$50,000||$320,000||$25,000/$500,000||$35,000||$75,000|
|Optional policies can be added?||Yes||Yes||Yes||Yes||Yes|
|Name additional insureds for free?||Yes||Yes||Yes||Yes||Yes|
This remodeling contractor insurance bundles the business interruption insurance, the commercial property insurance, and the general liability insurance into one comprehensive business insurance. This cost-effective coverage protects your home remodeling business from claims and losses arising from third-party (individuals who are not directly involved in your business operations such as visitors) bodily injuries and property damages, damages to your commercial property such as buildings and the contents(things such as office equipment laptops and computers, furniture, inventories, and signages), advertisement injuries and business interruption that may lead to indefinite or temporary business closure.
The coverage limits under this essential home remodeling contractor insurance is dependent on the specificity of the policy, the insurance provider, and the risks associated with your business. However, an insurer will pay you approximately $500,000 to $2,000,000 for general liability and $10,000 to $500,000 for commercial property insurance.
In the event a third party gets injured while in your premises for instance your delivery guy falls and fractures his/her leg in your commercial premises due to your slippery floor
In the event, you are sued for advertisement injuries such as brand infringement
In the event, your home remodeling business is forced to close down due to the occurrence of an insured peril
|Covers hired and borrowed equipment?||$3,000/$10,000||$2,500/$5,000||No|
|Miscellaneous equipment also covered?||$5,000/$10,000||No||Yes|
|Offered as an endorsement to general liability insurance?||Yes||Yes||Yes|
It’s sometimes referred to as equipment floater insurance. Under this insurance policy, your tools and equipment are covered against risks such as theft, fire, vandalistic acts, and adverse weather conditions such as windstorms at the job site. Most often insurers will provide coverage to tools and equipment that are moveable and those that are less than 5 years of age.
Some policies may also provide you with coverage for leased or rented tools and equipment. Important to note is that an insurer will not pay you if you intentionally damage your insured items. This policy also doesn’t provide coverage for tools and equipment that malfunction or break down due to general wear and tear.
The coverage limits available under this indispensable remodeling contractor insurance policy range between $5,000 to $50,000 per item. The actual cash value of your tools and equipment, the deductibles, and exclusions under this insurance are some of the determining factors on how much an insurer will pay you in the event your tools or equipment of work gets stolen, lost, or damaged unintentionally.
When you need your home remodeling tools and equipment to be repaired or replaced after they get stolen, lost, or damaged due to vandalistic acts
Inland marine insurance-This add-on protects you from incurring costs of replacing and repairing damaged tools and equipment during transit
Loss of income coverage-In the event you lose income due to mechanical or electrical breakdown of the tools and equipment you use in performing your home remodeling project then this add-on will ensure that you get compensated for your lost revenue
Installation floater insurance-If your home remodeling project requires you to install building equipment on your client’s site then it would be best if you purchased this add-on as it protects you from incurring costs arising from destruction or damage of the equipment during the installation process
Commercial auto insurance for home remodeling contractors protects you from any legal liabilities that you may be subjected to following an accident caused by your commercial vehicle which may be a car, truck or van. This policy covers your home remodeling employees, your family members, and anyone else you designate as a driver of your insured motor vehicle. Important to note is that this policy does not cover tools and equipment that are not affixed to your insured commercial vehicle. This is due to the fact that they are not deemed to be part of the insured vehicle. This policy also doesn’t cover any accidents caused by a rental car despite it being used for your business operations. The components under the commercial auto insurance for home remodeling contractors include:
Bodily injury liability coverage-this coverage exempts you from being liable to pay a third party for bodily injuries after the occurrence of an accident.
Collision coverage-this component protects you from incurring costs of repairing your damaged vehicle if it gets hit or if it hits another object or vehicle.
Comprehensive coverage-this component protects you from repairing your commercial vehicle in the event it is damaged or destroyed by fire, acts of crimes such as theft or vandalism, and adverse weather conditions such as floods.
Medical payments coverage-this component helps pay for your medical expenses as well as your passengers’ medical expenses after the occurrence of an accident.
Property damage liability-this helps you offset any costs you are legally bound to pay if your commercial vehicle damages or destroys another person’s property
Uninsured and underinsured motorist coverage-this component helps pay for you and your passengers’ injuries in the event you get hit by an uninsured or underinsured motorist
The coverage limit under this policy ranges between $50,000 to $100,000. This coverage limit may go up or down depending on the exclusions, specificity of this policy, and your insurance provider.
In the event, your commercial truck destroys another person’s property
In the event, you become liable to pay for third-party bodily injuries
In the event, your commercial vehicle is damaged by another vehicle, object, fire, acts of crime such as theft and vandalism, and by floods
Towing and labor coverage-Under this add-on, you are protected from paying the cost of towing your commercial vehicle from the scene of the accident to a repair shop after the occurrence of an accident
Rental reimbursement insurance-This add-on pays for the costs of hiring a rental car in the event your insured commercial automobile is not being used or is out of commission due to an accident
There are only two states in the USA where employers are not mandated to purchase worker's compensation insurance for home remodeling contractors. Under this policy, you are shielded from paying your employees medical expenses, dismemberment, and disability benefits as well as death benefits to their beneficiaries that are caused by work-related injuries and illnesses. A certain percentage of your employee’s wages can be reimbursed to them as compensation for their lost wages following their work-related illness or injury. Important to note is that if your employee accepts to be compensated under this policy, they automatically lose their right to sue you.
There is no set coverage limit on how much an insurer will pay you for the worker's comp insurance for home remodeling contractors. The risks associated with your home remodeling business, its size, and where it is located are some of the factors used by home remodeling insurance companies to determine how much they will pay you in the event an insured risk occurs.
|Cost per Month||Cost per Year||Deductible|
|General liability insurance||$150||$1,800||$0-$500|
|Commercial property insurance||$170||$2,040||$500-$1,000|
|Business owner's policy||$220||$2,640||$1,000-$2,000|
|Workers comp insurance||$210||$2,520||$1,500|
|Tools and equipment insurance||$153||$1,836||$500-$1,000|
The average home remodeling contractor insurance cost is $150 per month or $1,800 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, deductibles, policy limits, and more. Below is a table clearly outlining the cost per month and the cost per year of the home remodeling contractor insurance as provided by some of the most competitive companies. This table also provides you with a summary of what each of the listed insurance companies is best for:
|Cost per Month||Cost per Year||Best for|
|NEXT||$120||$1,440||Contractors looking for cost-effective home remodeling insurance coverages|
|CoverWallet||$120||$1,440||Home remodeling contractors who want to compare the available home remodeling insurance policies|
|The Hartford||$145||$1,740||Home remodeling contractors whose jobs are associated with high risks or bodily injuries and property damage|
|Tivly||$150||$1,800||Newly established or small-scale home remodeling contractors who are in need of basic insurance coverages|
|Thimble||$113||$1,356||Home remodeling contractors who are working on short-term projects and are in need of temporary and flexible coverages|
|Hiscox||$126||$1,512||Established home remodeling contractors who own or use expensive tools and equipment or who are working on high-value properties|
Get all the best quotes from leading providers in a click of a button!
Below is a list of some of the best home remodeling contractor insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability coverage.
You are guaranteed a 10% upon purchase of bundled policies
You can customize your home remodeling insurance policies
It's possible to access your certificate of insurance online
Couldn’t find any
NEXT sells its bundled policies at a 10% discount. Some of the insurance provided by this A- AM Best rated home remodeling insurance company include: commercial auto insurance, business owners policy, workers comp insurance, general liability, and tools and equipment insurance.
Best for: Contractors looking for cost-effective home remodeling insurance coverage
Average cost: $120 per month
You can get it's quotes free and fast to process coverage any day of the week
It provides its customers with free insurance advice
It’s possible to manage and purchase your home remodeling policies online
Not an insurance company but an insurance broker
CoverWallet is an insurance broker company that provides its customers with free quotes comparison. This dedicated insurance advisor is rated as a B by the Better Bureau Business (BBB). Its partnership with multiple insurance companies enables it to provide you with various home remodeling insurance policies.
Best for: Home remodeling contractors who want to compare the available home remodeling insurance policies
Average cost: $120 per month
Our rating: 10/10
You stand to benefit from its added advantages
You can easily download and use its mobile app for claims report
It provides you with financial services
The Hartford is an A+ AM Best insurance company that provides its coverage to all 50 states of the USA. This 212-year-old company is known for its unrivaled customer service and its ability to provide its customers with discounted coverage.
Best for: Home remodeling contractors whose jobs are associated with high risks of bodily injuries and property damage
Average cost: $145 per month
It's time-saving as it helps match you with the best home remodeling coverages that suit your company’s needs
You can access multiple remodeling contractor insurance from it
It provides you with fast quotes
No online quotes
This online insurance broker is not only cost-effective but also time-saving as it helps match you with the best home remodeling insurance policies that suit your company’s needs. Call now to compare quotes over the phone.
Best for: Newly established or small-scale home remodeling contractors who are in need of basic insurance coverage
Average cost: $150 per month
Our rating: 8/10
It provides you with an option of buying and managing your policies online
It can provide you with an hour of coverage
Its quotation process is fast
You can’t reach customer service by calling
Due to its outstanding customer service performance and its ability to provide its clientele with flexible and temporary insurance policies, the AM Best has rated Thimble an A. You can purchase the business owner's policy, tools and equipment insurance, workers compensation insurance and general liability insurance for your home remodeling contractor company.
Best for: Home remodeling contractors who are working on short-term projects and are in need of temporary and flexible coverage
Average cost: $113 per month
Our rating: 8/10
Anyone can use its straightforward website
You can access its remodeling contractor insurance through a mobile app
You stand to benefit from its discounted insurance policies
You cannot get its insurance coverage if you live in Alaska
Hiscox is an A+ rated insurer that provides its customers with discount incentives when it comes to its policies. Despite not being available in Alaska, this competitive insurance provider provides its clientele all over the 49 states with easy-to-purchase and easy-to-claim remodeling contractor insurance. Some of the home remodeling policies you can purchase from the 122 years old insurance company are: Business owner's policy, general liability insurance, commercial auto insurance, tools and equipment insurance, and workers' compensation insurance.
Best for: Established home remodeling contractors who own or use expensive tools and equipment or who are working on high-value properties
Average cost: $126 per month
Our rating: 8/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!