
12/10/08, 08:56 PM
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Join Date: Oct 2006
Location: IA
Posts: 1,631
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When you as a homeowner have an un-licensed and/or un-insured contractor/handyman doing work on your property, you put yourself at tremendous financial risk. You run the risk of being subject to anyone, or even all of the following if the contractor is injured while working on your home:
* Medical bills for injured contractor/handyman
* Lawsuit by contractor/handyman
* Increase in insurance policy cost or cancelation of policy by insurance company
No coverage under homeowner's policy. Some homeowners believe it is safe to use an uninsured contractor, assuming that any damages incurred would be covered under their own insurance policies. However, this isn't the case. Most homeowner policies require that any work to the property be done by licensed contractors; coverage is often specifically excluded for damages caused by "bootleg" contractors.
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