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Question DetailsAsked on 7/15/2013

Should I be concerned if a general contractor company is insured but not bonded? Having problems with water stains on hall and wall ceiling.

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Insurance protects you against liability for his actions (i.e. runs over a heighbor kid in your driveway, drops a tree no a neighbors house, etc), and workers compensation insurance protects you against claims from his workers if they get hurt on your job - both very important to have.

Bonding is sort of like insurance - if he fails to finish the job (walks off) or does not do a wrokmanlike job, you can put in a claim to his bonding company, and they (using the bond money) hire someone else to finish the job, up the available amount of the bond.

One problem with bonds, and something you need to ask the bonding agent about when checking the bond is current, is if there are already other claims against the bond, that reduces the amount available to cover your job.

Bonding is very important for a large job like a major remodel or addition or new house, where you can get stuck mid-job with tens of thousands of $ left half done, and maybe standing out exposed to the weather.

For smaller home repair jobs, generally not critical, though without the bond if the person really botches it bad (say cuts through a load-bearing beam and causes a partial collapse) or takes an advance and then fails to ever start work, you could be up a creek.

Something like a leak repair and followup drywall repair and painting probably not so critical unless it gets into repair and replacement of rotted floor or roof structure, or roof replacement where if he tears it off and then walks away or just never comes back you are in a world of imemdiate hurt.

Answered 6 years ago by LCD




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