Charleston’s coastal location makes water intrusion one of the most common and most expensive problems homeowners face after a renovation. Wind-driven rain combined with missing / poorly installed flashing can allow water intrusion to cause severe damage before the homeowner even sees a water stain. By the time you notice the defect, you may already be dealing with wood rot and / or termite activity, both of which require extensive, high-cost repairs.
The good news is that you can protect yourself by selecting an experienced, qualified contractor that carries general liability insurance. Here are six to check before you hire a contractor for your Charleston-area home renovation.
1. Vet the Contractor’s Qualifications
The phrase “licensed and insured” elicits trust from a homeowner interviewing a contractor. However, it is not enough to accept this phrase at face value.
“Licensed”: Does the contractor actually hold a contractor’s license? You would be surprised how many calls we get from homeowners who were shocked to learn only after their job went wrong that the contractor did not actually have a license. It is also not uncommon for contractors to claim to hold a “license” but actually engage in what is known as “license lending”, and do not hold a license themselves. You can test a contractor’s honesty by asking him two follow up questions: What type of license do you hold? Who is the individual in your company who holds the license?
In South Carolina, most contractor licenses fall in one of two categories: 1) specialty licenses (such as framing or mechanical); or 2) general contractor licenses. The South Carolina LLR website allows the public to look up a contractor’s license by typing in the contractor’s name or company name. Researching the company, you are interviewing on the LLR site allows you to confirm the company actually holds a license, find out what type it is, whether it is active, and whether there has previously been any complaints or discipline associated with that license.
“Insured”: Contractors commonly carry at least four types of insurance: Auto, Workers Comp, Premises, and Liability. As a homeowner, you should verify that the contractor you are interviewing actually carries Liability insurance, commonly referred to as Commercial General Liability, or CGL. Depending on the contractor, liability insurance can cost tens to hundreds of thousands of dollars a year, and many contractors decide to do without it. Liability insurance is vital to you as the homeowner, because it provides you with protection if the contractor damages your home, creates a dangerous condition that hurts you or your family while he is working, or if his work is defective and allows water intrusion in the future. Current CGL coverage is a non-negotiable when hiring a contractor for a sizable project.
Lastly, personally vet the contractor by looking at prior projects and speaking to past customers. Ask the Contractor to speak to his former customers. Are they happy with how the job turned out? Did the contractor act professionally and live up to his promises? Has he responded to warranty requests? Finally, ask him to bring you to look at some of his other jobs, or give you the addresses. See what his finished product looks like, and decide for yourself if it is the quality you would like to see in your own home. If he cannot show you prior work that is similar to the project you are considering hiring him for, you may want to consider interviewing other contractors – a contractor may be exceptional at installing tile, but inexperienced with building tile showers, for example, so you want to make sure what you are hiring him to do is the same type of work that he specializes in.
2. Get a copy of his Certificate of Insurance
A certificate of insurance is a document that is typically generated by an insurance agent or insurance carrier and identifies the types and amounts of coverage carried by the contractor, as well as the named insured. This allows you to verify that the contractor carries liability insurance, and also know what insurer holds the coverage. This information is extremely important to have and keep because damage often isn’t discovered until months or years later. If you find out years after your project is complete that there are damages, that contractor may be long gone – but if you have his insurance information, you can file a claim with his insurer without needing to track him down, or without talking to him at all.
When you receive the certificate of insurance, pay close attention to the policy term. If the term is already ended, then the insurance is not active. If the term is close to expiration, then the contractor should provide you with a new certificate during the job.
Furthermore, you should contact the “producer” or insurance carrier to verify the coverage is active. Contractors can cancel their policies and still use certificates of insurance that were issued prior to cancellation.
Lastly, make sure the “named insured” on the certificate of insurance is actually the person you are contracting with. A contractor who provides with you with a certificate of insurance with an unfamiliar company name has some explaining to do.
3. Ask to Meet the Subcontractors
Most general contractors bring in subcontractors for specialty work, such as roofing, siding, windows, and waterproofing – the exact trades most responsible for water intrusion problems. You need to know who these subs are before they touch your home.
Ask the general contractor how long they have worked with the subs.
A contractor with long-standing sub relationships usually trusts their quality. If they’re bringing in subs they barely know, that’s a risk, especially for the parts of your home meant to keep water out.
Lastly, insist on being provided with the subcontractor’s certificate of insurance. An independent contractor should have his own insurance – and many general contractor policies exclude coverage if the general contractor uses uninsured subcontractors to do the work. Do not skip this step. Ask for a certificate of insurance from every subcontractor working on your home, not just the general contractor. Save these on your desktop or somewhere you will not lose them.
4. Check Online Reputation
The subcontractors are the ones physically doing the roofing, flashing, siding, waterproofing, or other specialty work that is most tied to future water intrusion claims. Look up the subs by name. Check for South Carolina licensing in their trade. Search their google, nextdoor, or yelp reviews. Do the same thing for the general contractor. Lastly, search the Charleston County Public Index for any pending or former lawsuits against these entities.
Already Dealing with Water Intrusion or Construction Defects?
If you have not started your project yet, following these steps can ensure you are protecting yourself and your investment as much as possible before you hire your contractor. But if your project is already complete and you are noticing signs of water intrusion or other damages, this could be an indication of a latent construction defect. South Carolina law provides avenues for accountability to contractors whose work violates the building code or is otherwise defective, and you may be entitled to compensation. However, holding contractors accountable requires knowledge of South Carolina construction law and understanding of how CGL policies work. Call Fuller Law at 843-994-6610 to speak with a member of our defective construction team about your case.
