Insurance & Warranty

Contractor Insurance Requirements

Every contractor working on your property should carry two types of insurance: general liability and workers’ compensation. This is not optional and it is not negotiable. If an uninsured worker falls off your roof or an uninsured contractor’s mistake floods your kitchen, you are personally exposed to liability.

Insurance Type	Minimum Coverage	What It Covers	How to Verify
General Liability	$1,000,000 per occurrence	Property damage, bodily injury to third parties, completed operations	Call insurer on certificate. Confirm policy is active and names the correct business entity.
Workers’ Compensation	State minimum (varies)	Injuries to contractor’s employees on your job site	Verify with insurer. GA exempts sole proprietors with no employees. FL requires it for 1+ employees in construction.
Commercial Auto	$500,000+	Accidents involving contractor vehicles on your property or en route	Less commonly verified but important for large projects with heavy equipment.

Your Homeowner’s Policy

Notify your homeowner’s insurance company before major renovation work begins. Most policies require notification for renovations exceeding $5,000–10,000. During construction, your risk profile changes — open walls, exposed wiring, construction materials, and increased foot traffic all increase loss potential. Some carriers offer builder’s risk endorsements that extend coverage during construction. Failure to notify can result in claim denial if something goes wrong during the renovation.

After renovation completion, update your policy to reflect increased replacement value. A $60,000 kitchen remodel means your home costs $60,000 more to rebuild — your coverage limits should reflect that. Many homeowners forget this step and discover they’re underinsured only after a loss.

Warranty Structures

Renovation warranties come in three layers: the contractor’s workmanship warranty, manufacturer product warranties, and optional third-party warranty programs.

Warranty Type	Duration	Covers	Watch For
Contractor workmanship	1–2 years	Installation defects, construction errors, callbacks	Get it in writing. Verify it covers subcontractor work.
Manufacturer (products)	5–25+ years	Defective materials — cabinets, countertops, appliances, fixtures	Most require professional installation. Keep receipts.
Structural	5–10 years	Foundation, framing, load-bearing elements	Only offered by some builders. Critical for additions.
Third-party home warranty	Annual renewal	Systems and appliances after builder warranty expires	Coverage limits, deductibles, and exclusions vary widely.

What to Demand in Your Contract

Your renovation contract should explicitly state: warranty duration and scope, process for submitting warranty claims, response time commitment (48 hours for emergencies, 2 weeks for non-urgent), whether the warranty is transferable to a new owner, and what is excluded. Verbal warranty promises from your contractor are legally worthless in both Georgia and Florida. The National Association of the Remodeling Industry provides model contract templates with standard warranty language.

Florida Insurance Considerations

Florida’s homeowner insurance market is volatile, with premiums rising significantly since 2020. Renovations that improve your home’s insurability — impact-rated windows, updated roof, modern electrical and plumbing — can reduce premiums by $1,000–$3,000 annually. Some carriers offer wind mitigation credits for specific upgrades. Request a wind mitigation inspection after any roof, window, or opening protection upgrade to capture available discounts. In Georgia, insurance is more stable, but updated systems still qualify for 5–15% premium reductions with most carriers.