- Before anything else, document everything immediately through a combination of photos, videos, and written records
- Check the contractor’s insurance and licensing, as they should have proper coverage for property damage
- Understand your rights and know that contractors are liable for damage caused by negligence, and you have multiple avenues of recourse
- The claims process can vary between the contractor’s insurance and homeowner’s insurance, depending on the circumstances
- Consider resolution options, including the contractor repairing the damage out of their pocket, mediation, arbitration, and small claims court
The last thing you expect after you hire a contractor to work on your home is for them to increase the number of repairs needing to be performed. Unfortunately, accidents happen every day, even ones caused by professionals. Knowing what to do if a contractor damages your property can reduce stress, save you time, and save you money. While this is likely unfamiliar territory for you, this guide will lay out the process you should go through and the options you are entitled to take.
Immediately After the Damage Occurs
Document EVERYTHING! If a contractor damages your property, you need to use everything at your disposal to properly document the damage, much like a crime scene. Take photos, videos, and write down everything you can think of. For example, it’s better to have too many photos than too few because you could be missing a key angle of the damage or equipment, which could help establish negligence.
Use wide shots and close-ups from different angles to capture different details. Create a written record describing what happened, when you noticed the damage, and the conversation you had with the contractor or laborer. Write down all insurance information you can obtain, as this will help with the claims process if you need to go that route.
If there are any safety risks (i.e., structural damage, water leaks, downed power lines), address these issues first to ensure no one gets hurt or there is no further harm to the property. However, attempt to document everything before temporary repairs are made.
Understand the Contractor’s Liability
In most cases, the contractor is licensed and insured, and will then likely be liable for any damage caused during their work. However, not all contractors carry adequate insurance coverage. Some may have minimal coverage, others might have no insurance at all.
It may be too late at this point if you’re researching “what to do if a contractor damages your property?”, but you should verify the current insurance of any contractor before work begins, so you know in advance what’s covered if the contractor damages your property. Also, note the coverage amounts that would be available on the insurance documentation.
Working with Your Contractor
Now, before we get too carried away, any reliable contractor who causes property damage will fix the damage they cause before there is any need for escalation. Professionals realize that accidents are a part of the business, and they probably already have procedures in place to handle what to do if they, as the contractor, damage your property. Most will acknowledge the damage, take responsibility, and work with you to arrange the repairs if they aren’t able to perform the repairs themselves.
This is obviously the ideal situation. Yes, it will take longer to complete your project. Yes, it is incredibly frustrating to have this happen. But, by handling the repairs themselves or through a trusted subcontractor, they can ensure a high-quality fix and prevent any further reputation damage.
Insurance Claims Process
Your contractor’s liability insurance will likely be the primary source of compensation for the damages. If needed, you’ll file a claim through their insurance by contacting them directly and relaying the information. Be prepared to provide all the documentation you collected earlier.
You’ll only need to use your homeowner’s insurance if the contractor lacks proper coverage, has no coverage, or closes down the lines of communication between the two of you.
If the Contractor Won’t Take Responsibility
Having a contingency plan of what to do if a contractor damages your property and then doesn’t take responsibility could end up being a necessity. Legal action may be necessary. This could involve small claims court (for damages between $5,000 and $10,000, depending on your state’s limits), or even civil litigation.
Before pursuing legal action, attempt mediation or arbitration services. These are often quicker than using the legal system and less expensive.
Conclusion
While contractor-caused property damage can be frustrating and costly, understanding what to do if a contractor damages your property is the first step in the resolution process. Once you’ve obtained the proper knowledge, you can begin the process of repair. With the right approach, most situations can be resolved fairly and efficiently, allowing you to continue with the project successfully.
