Short Answer
Homeowners should request evidence of appropriate insurance and understand what coverage applies to the project.
Detailed Explanation
Before hiring a contractor, homeowners should request a certificate of insurance (not just a verbal assurance that they're insured). The certificate should show: general liability insurance (covers property damage or injury caused by the contractor's work), workers' compensation insurance (covers injuries to workers on your property — without this, you could be liable), and adequate coverage limits. Verify that the insurance is current and valid by checking the dates and contacting the insurance company if necessary. If a contractor can't or won't provide a certificate of insurance, that's a significant red flag. Without proper insurance, the homeowner could be liable for property damage, injuries, or other losses caused by the contractor's work.
Why It Matters
Without proper insurance, the homeowner could be financially responsible for injuries or damage caused during the project. Verifying insurance protects the homeowner.