Your Home, Our Priority: The NNINS Checklist for Hiring the Right Contractor
As a homeowner, there’s nothing better than dreaming up remodeling projects to make your house feel more like “home” or to improve it's function. Whether it’s repairs or renovations, home projects are as exciting as they are demanding when it comes to planning and executing your vision. Hiring the right home contractor for your project is an important step in ensuring things go smoothly. At Northern Neck Insurance, we’ve seen it all, and we are here to help you better understand how to pick a general contractor for your home projects. For a printable version of our General Contractor Checklist, click here (opens in a new window).
First Steps: Planning Your Home Renovations
Define Your Project
The first step of any home project is a clear, well-defined plan. You should have an idea of what the project will entail. Whether it’s a single room renovation or an addition that will add several rooms to your home, understanding the details and scope of your project is the first step in determining what you should be looking for in a contractor. It can be helpful to gather references for inspiration and design and style preferences, as well as establish a realistic budget and timeline for your home project.
Get Familiar with Contractor Licenses: "Class A" vs "Class B" vs "Class C" Contractors
There are three licensing classes of general contractors in Virginia, depending on the size, scope, and cost of your project.
- Class A Contractor: Can handle any size project, from major renovations to new home builds, with no limits on single contracts or annual total work.
- Class B Contractor: Limited to individual projects valued between $15,000 and $150,000, with an annual total project value of less than $1,000,000.
- Class C Contractor: Restricted to individual projects valued between $1,000 and $30,000, with an annual total project value of less than $250,000.
It’s important to keep in mind that in Virginia, any project over $1,000 in value requires a license.
Start Researching Contractors
Sometimes the best way to find a reliable contractor is by asking your friends, family, and community for recommendations. Hearing first-hand accounts of someone’s experience with a contractor will give you a good idea of what to expect in terms of timeliness, communication, and the end results for other home projects.
Consider your project's implications for your home's value and insurance coverage
Home renovation projects can significantly increase a property's value, with some renovations offering better returns than others. Do some research on what enhance functionality and appeal to a broad range of buyers. Consider how it will increase your home's value and home insurance needs in the event of a loss. Should you consider replacement value coverage? Also keep in mind that some home improvements, such as replacing your roof, can lower your home insurance rate because they make your home more resistant to damage from various perils.
After you've had a successful renovation, remember to update your home insurance policy. Your local agent can help you determine any added value or improvements to match your coverage limits and even find possible discounts for your home insurance policy.
Next Steps: Find the Right General Contractor
Verify your Contractor's Licenses and Credentials
When selecting a contractor for home renovations, it is crucial to verify the contractor’s license. An unlicensed contractor means there is no legal recourse if something goes wrong, and it can cause potential problems with your homeowner’s insurance policy. In Virginia, you can use the Virginia Department of Professional and Occupational Regulation (DPOR) online lookup tool. You’ll want to check for an active license, no disciplinary action, and the appropriate class depending on your project.
Check Contractor's Insurance and Bonding
Just like you protect your home with homeowners insurance, contractors should have insurance to cover accidents and unexpected incidents. Contractors should have general liability insurance for coverage if your property is damaged during the project, as well as worker’s compensation insurance to protect you from liability if someone is injured on your property while performing contractor work. You can request Certificates of Insurance from both the contractor and their insurance provider to be secure. Some contractors are bonded, offering an extra layer of security in the event something goes wrong.
Review Contractor's Portfolio and Past Work
It’s important to ensure the contractor you select is qualified for your project. Some contractors specialize in specific home repairs or renovations, so it is crucial to make sure you go with one who can bring your vision to life. You can ask your potential home contractor for a portfolio or an example of past work that is similar to your project.
Ask For References From Previous Clients
Good contractors have satisfied clients. Asking for references will give you insight into a variety of considerations, like:
- Was the project completed on time and within budget?
- How was their communication?
- Were there any significant issues, and how were they resolved?
- Would you hire them again?
Knowing details about a general contractor’s ability to stay on time and on budget can help you decide which one is right for you.
Get Multiple Bids And Estimates
There are a lot of home contractors to choose from, and each one could give you a different estimate based on their processes and work style. It’s a good idea to get at least three bids for your project. You’ll want to ask for an itemized breakdown of labor, materials, permits, and potential contingencies when looking for an estimate, and it’s important to keep in mind that the lowest bid is not always the best. Low bids could mean corner-cutting or other hidden costs that add up down the road.
Contracting A Contractor
Get A Comprehensive Written Contract
A detailed contract in writing is your legal protection when entering into a contract with a home contractor. This should include everything from your detailed scope of work, payment terms, timelines, permits, warranty information, and information regarding any changes or disputes. It’s also a good idea to have a legal professional review the contract before both parties sign it.
Establish Payment Terms
It’s best to avoid paying the full amount upfront, opting instead for a small deposit before work begins. For Virginia homeowners, the DPOR suggests an initial down payment of either 10% or $1000. It’s also important to withhold the final payment until all contracted work is completed to your satisfaction and passes a final inspection.
Ensure Proper Permits Are In Order
Permits are a crucial component of any home contracting work, and are required by local Virginia municipalities for most significant home projects. Unpermitted work can lead to fines and impact your homeowner’s insurance coverage in the event of a claim related to unpermitted work. Ensuring the necessary permits are in place is an important step in hiring a contractor to work on your home.
Establish An Open Line Of Communication For The Duration Of Your Home Project
You should be in touch with your general contractor throughout the project. Establish regular check-ins and document everything, from invoices, communication logs, and photographs or videos of progress along the way.
NNINS Is Here To Guide You To The Right General Contractor
At Northern Neck Insurance, we understand it is important to select the right general contractor for your needs. Your homeowner’s insurance policy won’t cover any damage caused by a contractor’s negligence or poor workmanship, so vetting your contractor and making sure they are insured and licensed is key in preventing costly mishaps down the road. As Virginia’s trusted homeowner’s insurance provider, our goal is to help you make an informed decision when hiring a contractor so you can enjoy renovating and remodeling your home without worry.
For more tips on how to protect your Virginia home, contact an experienced NNINS agent today!
THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
