You finally found the contractor. They gave you a fair bid, they can start next month, and when you asked about insurance, they said, "Oh yeah, we're fully covered."

That sentence has cost a lot of homeowners a lot of money.

Whether you're redoing a 1940s kitchen in Lakewood, putting a new roof on in Casa View, or tackling that bathroom in Hollywood Heights, you've probably wondered: should my contractor have insurance, what kind, and does it actually protect you? Here are straight answers to all three before anyone picks up a hammer.

Should My Contractor Have Insurance?

Yes. Every time, no matter how small the job.

When something goes wrong on a renovation, the first question is whose insurance pays. If your contractor's coverage doesn't respond, the next place people look is you and your homeowners policy. That can mean a claim on your record, a higher premium at renewal, and in some cases money out of your own pocket.

And "I'm insured" isn't proof. It might mean an active policy with solid limits. It might also mean a policy that lapsed in March, one that covers painting but not roofing, or one that covers the owner but not the three guys he hired last week.

Here's something many Texans don't know: Texas doesn't require most private employers to carry workers' comp. It's the only state that works this way. So in Texas especially, you can't assume your contractor is covered. You have to ask.

What Insurance Should My Contractor Have?

General Liability

This covers damage the contractor causes to your property or someone else's. Think a ladder through your neighbor's window, a plumbing mistake that floods your hardwoods, or a fire from a soldering torch. This is the bare minimum.

Workers' Compensation

This covers the contractor's crew if someone gets hurt on your property. Without it, if a worker falls off your roof, that injured worker and their medical bills may come looking for the property owner. Ask directly whether the contractor carries workers' comp, and if they don't, ask how injuries on the job are handled.

Commercial Auto

If they're driving work trucks onto your property and hauling materials, their vehicles should be covered under a business auto policy, not a personal one.

Coverage for Subcontractors

Most renovations involve more than one crew. Ask who the subs are and whether they carry their own insurance, or whether the general contractor's policy covers them. Don't assume.

How to Verify It

Ask for a certificate of insurance. It's a one-page summary of the contractor's coverage. Ask for it to come directly from their insurance agent, not as a photo or a PDF they've had saved since 2023. A contractor who stalls on this is telling you something.

Check the dates. The coverage should be active now and run through the end of your project.

Make sure it matches the job. Contractor policies are written for specific types of work. A handyman's or painter's policy may exclude roofing entirely.

Call to confirm. The certificate lists the agent's phone number. A two-minute call confirms the policy is active.

Does My Contractor's Insurance Cover Me During My Renovation?

Partly, and this is where homeowners get surprised.

Your contractor's insurance covers damage and injuries they cause, as long as the policy is active and fits the job. It doesn't replace your homeowners policy. If a storm rips off the tarp on your half-finished roof, or someone breaks in and steals materials, that's usually not on the contractor.

For bigger remodels, there's a policy built for exactly this gap: builder's risk. It covers the structure and materials while the work is underway, and who should buy it, you or your contractor, isn't always obvious. We'll break it down in an upcoming post, Builder's Risk Insurance: Who Needs It During a Renovation?

Ask to Be Named an Additional Insured

On a bigger project, it's reasonable to ask to be listed as an "additional insured" on the contractor's liability policy. That gives you direct rights under their coverage if something goes wrong. A well-run contractor won't blink at the request.

Call Your Own Agent Before Work Starts

Your dwelling coverage amount may need to go up. That new kitchen or added square footage raises what it would cost to rebuild your home. If your policy isn't updated, you could be underinsured the day the project finishes.

Tell them if you're moving out during the work. Many policies have rules about homes left unoccupied, and a major renovation can trigger them.

Pull permits. Unpermitted work can create headaches at claim time and when you sell.

If You're a Contractor Reading This

Good. Homeowners who ask these questions are the ones you want. Having a current certificate ready to send the same day is one of the easiest ways to win a job over a lower bid. If your coverage has gaps, such as no workers' comp or a policy that doesn't match the work you actually do, it's worth fixing before a homeowner finds it for you.

Have a Certificate You're Not Sure About?

GIBB Insurance Services has been helping Dallas homeowners and contractors since 1997. If you've got a contractor's certificate of insurance and you're not sure what you're looking at, send it our way. We'll tell you what it covers and what it doesn't, in plain English.

Call us at 214-324-3660 or visit gibbinsuranceservices.com.