COVERAGE CORNER
HOME RENOVATION PROJECT? INSURANCE CONCERNS & THE ‘RANDO RENO’ GUY By Kevin C. Amrhein, CIC “If I ever have to quarantine at home again, then doggone it, I’m going to do it with my dream bathroom!” Since COVID, millions of people, stuck in their homes for longer than they ever dreamed possible, took note of their surroundings, made lists, and fueled a nationwide explosion of home renovation projects. Your insured – I’ll call him ‘Kevin’ – is ready for the big bathroom renovation and wisely decides against doing any of it himself. He now has two options: 1) hire a licensed contractor, request
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proof of insurance, and receive a written warranty of work or 2) hire the cheapest guy out there who is unlicensed, has no insurance, and offers no warranty. Which option do you think he’ll choose?
OPTION 2? REALLY? OH, FOR CRYIN’ OUT LOUD, KEVIN Kevin pays a random guy to reno the bathroom, which requires the removal and installation of plumbing and electrical fixtures, floor coverings, and wall coverings. The job is completed, Kevin pays JANUARY 2021
the ‘rando reno’ guy cash, and the problems begin. After experiencing damaging leaks and dysfunctional electrical, Kevin has the work inspected. It’s determined that all work was improperly performed and must be torn out and replaced. Kevin tracks down ‘rando reno’ guy who says he has no insurance, no money, and can’t fix the problem. Since he spent his savings on the project, Kevin’s broke and unable to fund the needed repairs. Kevin files a claim with his homeowner’s insurer.
