Homeowner safeguards with contractors?

44trxfun · Mar 4, 2004

I'm going to have some drainage / excavator work done on my property and within the town's ditch right-of-way. (The ditch needs "buttressing"; due to a very saturated area up-slope of it, resulting in sloughing of the cutslope. I'm having this done to prevent headcutting up onto my property.) I have OK'd the work with the highway superintendent and he says I can proceed without any written permit, etc. I'm thinking it would probably be good to get his approval in writing.

I will explain the full situation in more detail later (with pictures), but my initial question about the need to check for insurance and bonding (and ???) with any contractors I hire to do this work for me. I'm in NY State if that makes any difference. I really don't want to call my homeowner's agent since it seems like every time you call them (not necessarily make a claim) the rates increase. Any ideas? Thanks.

Inspector507 · Mar 4, 2004

I think you have the right to ask for any statement in writing and to ask for insurance and bond info.

44trxfun · Mar 5, 2004

Yo dudes! (Did that get your attention?)

Any thoughts on this? I could really use some of your experienced wisdom on this BEFORE it's too late! Thanks...

trkbldr · Mar 5, 2004

Guess I'm not up to speed on "excavationese" and I really have no idea what you plan on having done /forums/images/graemlins/confused.gif. However, I would cover my behind six ways from Sunday if it were me. Written permission from the hiway supt. is a must. The contractor should be licensed (if required) and be insured. Ask for PROOF of this as they can tell you anything to get the job. If possible, go with a local, well established contractor. Are there any utility lines buried in the area? Make sure to have them located before work begins. Just think where you would be if an unlicensed, uninsured contractor hit a gas main while working in a spot that you don't have written permission to be working on /forums/images/graemlins/blush.gif /forums/images/graemlins/shocked.gif /forums/images/graemlins/frown.gif. Yeah, worst case scenario, I know. But if your luck is anything like mine, it's best to think this way /forums/images/graemlins/grin.gif.

JazzDad · Mar 5, 2004

I'll only add that I can't imagine why every call to your insurance agent would cause your premium to go up. If this happens, question it. Is it a coincidence? /forums/images/graemlins/confused.gif

jfh230 · Mar 5, 2004

Insurance companies are getting very tough on homeowners. I had trouble finding anyone to insure the property we bought just because it had two separate house on it. Ins co's figured twice the risk. Your credit rating also plays a big part in it and will also affect your premiums. Fortunately I'm squeaky clean and actually got a discount. Every time you call the home office it is logged in no matter what the reason for the call. Too many calls in one year and they figure you are a higher risk. I don't think this applies to calling your local agent if you have one unless the home office requires them to. Also if you own a dog the breed matters. They have a list and if your dog is on it they may refuse to insure you. Funny thing is whoever made up the list has absolutely no knowledge of dogs. We had a kuvasz, a dog known for their guarding abilities, whose philosophy breed wise is "you are an enemy until proven otherwise". In WWII ****** so feared these dogs he issued a standing order to shoot them on site. Almost wiped the breed out. Anyway kuvasz is not on the list, my sisters collie (remember lassie?) is. The insurance industry is changing and it is going to come out of our pockets.

Jack

jfh230 · Mar 5, 2004

Definitely get something in writing from the town. If your town requires licenses for contractors then get a copy of that from your excavator, along with copies of his all risk insurance policy and workman's comp. And make sure he is not going to sub out the work to some guy with a backhoe and trailer. In other words he or his men and equipment are going to do the work. Asking for references is not a bad idea and follow up and check them out. And don't be offended if he wants to check you out. After all he wants to be sure that you won't stiff him or cause unnecessary grief. It was a good suggestion to use a local guy with a good reputation even if you pay more $$.

Jack

44trxfun · Mar 5, 2004

These are some great suggestions; thanks guys!

DKinWA · Mar 5, 2004

I'm in Washington state, but the principles are the same. I'd ask any potential contractors for proof of licensing, insurance and bonding before I'd hire them. I actually keep copies of everything in my briefcase and will give customers copies if they ask. The documentation also contains my insurance agent/company numbers so customers can contact my agent directly if they choose to. Having the proper licensing, insurance and bonding is part of running a legal/professional business and protects both myself and my customers.

Personally I wouldn't want to risk hiring a fly-by-night outfit to do the work since it's too easy to end up in a legal quagmire. Last time I heard, a fibre optic company billed a contractor $1,000 a minute to repair a line that was severed by an excavator.

44trxfun · Mar 5, 2004

Again, thanks everyone. Stupid question here (This is my first experience hiring a contractor for anything "major"--and this is turning less major by the day which is good news).

I assume a contractor's insurance cover them for injuries sustained at a client's site. Even so, in the event a contractor was injured on my property, for example, what's to prevent them from coming after me and suing me, even if they do have insurance?