Received a quote for some work, and it's less expensive than I thought- I emailed the guy back w/some questions, one of them being if he's licensed and insured-

I've read a bit about it, and it seems very risky to work w/someone who isn't- is that true, or are the things I've read over-dramatizing it?

I don't want to risk getting sued if someone gets hurt, or having damage done to my home or having work done incorrectly- is there anyway of including something in the contract that would cover all of that? Something to the extent of if anyone is hurt while doing work, we are not liable and that any damage done will be repaired at no cost to me? Would that be sufficient, or could I still end up with a mess on my hands?

If so, then I'll get more quotes from people who are licensed and insured- or try to do the work myself and see what happens- because it's not worth the risk. But my question is, is there a way to minimize or eliminate that risk with something in the contract?

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Originally Posted by margog85

Received a quote for some work, and it's less expensive than I thought- I emailed the guy back w/some questions, one of them being if he's licensed and insured-

I've read a bit about it, and it seems very risky to work w/someone who isn't- is that true, or are the things I've read over-dramatizing it?

I don't want to risk getting sued if someone gets hurt, or having damage done to my home or having work done incorrectly- is there anyway of including something in the contract that would cover all of that? Something to the extent of if anyone is hurt while doing work, we are not liable and that any damage done will be repaired at no cost to me? Would that be sufficient, or could I still end up with a mess on my hands?

If so, then I'll get more quotes from people who are licensed and insured- or try to do the work myself and see what happens- because it's not worth the risk. But my question is, is there a way to minimize or eliminate that risk with something in the contract?

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If he is unlicensed and your town/city requires a license you cannot sue him and win because you would be asking the Court to enforce an illegal transaction.

If he is injured and is uninsured you are liable. For that matter, the homeowner is responsible for "supervising" the workmen to some extent and you are liable for injuries which occur on your property. I'm not saying I agree. I'm just saying that's the law in NYS.

Add a workers comp clause to your homeowners insurance (and it may already have the clause) if you are worried about injuries on your property.

the homeowner is responsible for "supervising" the workmen to some extent and you are liable for injuries which occur on your property

Is that true even if we hire someone who is licensed and insured?

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Originally Posted by margog85

the homeowner is responsible for "supervising" the workmen to some extent and you are liable for injuries which occur on your property

is that true even if we hire someone who is licensed and insured?

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Yes. I do these investigations all the time.

If they are not licensed, will there be an issue with the buiding permits and the inspector

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Originally Posted by Fr_Chuck

If they are not licensed, will there be an issue with the buiding permits and the inspector

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And if they never finish or the house falls down because of shoddy workmanship the owner cannot collect. The Court will not enforce an illegal transaction.

Wow. I didn't know we would be liable for injuries on our property if they were licensed & insured- is that something that's typically covered by home owners insurance? How often is that an issue?

And I didn't realize it was 'illegal' to have someone do work who wasn't licensed & insured- just thought it was riskier- and cheaper- lol.

Guess I'll have to opt for giving it a shot myself and calling in someone licensed & insured for the things that stump me.

JudyKayTee, your location shows as being NY State- Western NY, per chance? Any recommendations you could give me on contractors? Lol- I'm so clueless w/all of this.

Thanks for the advice!

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Originally Posted by margog85

Wow. I didn't know we would be liable for injuries on our property if they were licensed & insured- is that something that's typically covered by home owners insurance? How often is that an issue?

And I didn't realize it was 'illegal' to have someone do work who wasn't licensed & insured- just thought it was riskier- and cheaper- lol.

Guess I'll have to opt for giving it a shot myself and calling in someone licensed & insured for the things that stump me.

JudyKayTee, your location shows as being NY State- Western NY, per chance? Any reccommendations you could give me on contractors? lol- I'm so clueless w/all of this.

Thanks for the advice!!

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If the injured worker has a sharp Attorney, yes, you will be brought in. That's why I carry Workers Comp on my homeowners insurance. I don't think I've ever investigated when it wasn't a very serous accident, either a painter or a roofer taking a fall.

I don't know if contractors have to be licensed where you live - they do have to be licensed where I live (also in NYS) and if they are not, as I said, you are responsible for breaking the law and cannot sue them. It is your responsibility to verify insurance and licenses.

Nope, not in your area and even so I would never recommend a contractor. That's like recommending a restaurant - my meal was wonderful, you went there and got poisoned!

I don't know who sponsors the home boards here but someone may advertise or there may be names under that topic.

For the Canadian's in the crowd reading this, things are a little different. In BC, we can get coverage for workers as a homeowner from the Workers Compensation Board. It is a simple matter of registering. I can't remember the rate, but it is just a few percent of wages.

Registration is free. After registration, we pay annually in arrears based on actual salaries paid. It couldn't be easier and just removes a whole lot of risk because we can hire anyone we like and they'll be covered.

You never really told us what kind of work you are having done. Some work must be done by a licensed professional and your city building department can explain that to you. Things like installing plumbing rough in or electrical supply and panels must have a licensed pro. Installing a new kitchen sink and faucet or a new outlet or switch do not require a pro or a license. What is your situation?

Tearing down paneling, plaster & drop ceiling- putting in insulation, hanging & finishing drywall- adding 2 new outlets, 3 can lights, a light fixture in the dining room w/a switch on the wall- installing new cabinets, countertop & a dishwasher- and possibly some flooring (laminate & carpeting)-

What do you thinK?

A competent handyman can do these jobs, at least I could. I am sure you have heard you get what you pay for, right? Hire a contractor with insurance and maybe he'll charge you around $10,000 for your job, you are paying for his insurance policy in that $10K. Hire a uninsured handyman for about $6000. It's a bit like making a $4000 bet on the side, will the handymann do $4k worth of damage or will you pocket that $4k. Its your call. The hardest part is trying to determine competency.

Am I putting myself at risk though, as far as getting sued? That's my main concern- he said he could give me references and show me work he's done in the past, and I could get an idea from that how good he is at what he does- I just don't want him to get hurt and then end up suing me and I lose my house or have to pay his medical bills...

Looks like from what I've read a license is only required for electrical & plumbing work- and I don't know, he's only doing very minor things that I would do myself if I knew how (and I could probably figure out how but might get electricuted in the process, so I'd rather not chance it!)- like putting in a dishwasher, adding a couple of outlets, and putting up a few can lights... so I don't know how much of a risk that is.

If a license isn't required for the majority of the work he's doing, then I'd just base my judgment of his level of expertise on the work I see and his references-

I guess it's the insurance that I'm more concerned about. And I just wanted to see if putting that in the contract would give me any leverage in court if it ever came down to it.

You likely already have home owners liability insurance so check with your agent to see what's covered. Insurance does not prevent a law suit just who pays for the defense and damages. It may or may not cover a workman doing repars to your home. Insurance will not cover your or the repairmans willful negligence.

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Originally Posted by ballengerb1

You likely already have home owners liability insurance so check with your agent to see whats covered. Insurance does not prevent a law suit just who pays for the defense and damages. It may or may not cover a workman doing repars to your home. Insurance will not cover your or the repairmans willful negligence.

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Absolutely correct - your homeowners (if you have the provision) will defend you against a lawsuit and also pay damages if awarded. Mine also pays medical bills from the beginning if a worker is hurt. I don't know what the percentage of people who get hurt is - probably very small - and you must keep in mind that I investigate negligence. That's what I do. I don't know about the millions of people who DON'T fall off a roof; I only know the two who do. It's a roll of the dice - want to take the chance or not - ?

I agree with Ballenger about qualified handymen (handypeople, is that politically correct - :D) but my town requires that any electrical work be inspected by the town and approved. How they enforce this I have no idea but I had two dedicated lines put in and had to play the game, including the cost of inspection.

I never know exactly where the fine line is drawn - I recently had a lot of work done by a great handyman, really honest, hard working, a perfectionist and didn't need a permit for any of the plumbing but did for the electrical and he brought a friend in to do that work.