A Homeowner’s Checklist for Home Improvement Projects
For many homeowners, warmer weather means home improvement projects around the house and yard. Whether large or small, follow these steps before starting a project or hiring a contractor to avoid issues later. Some problems, such as not having the proper permits and inspections, can delay or prevent the sale of your home years from now.
Research Permit Requirements
Some home repair, improvement, and upgrade projects can be done without a permit. Examples of such work include painting, plastering, and replacing plumbing fixtures. Others require a permit and, sometimes, an inspection. Obtaining proper permits not only protects the homeowner, but also eliminates issues when trying to sell a property. (Unpermitted work can delay or derail a sale)
Most construction projects in New York City require approval and permits from the Department of Buildings. Often, the contractor will manage the permit application process, but the homeowner—and not the contractor—is ultimately responsible for obtaining the required permits.
Even if the project itself doesn’t require a permit, the contractor (if using one) must have the proper licensing for that type of work. For instance, New York City doesn’t require a permit for installing new cabinets, but contractors must have a Department of Consumer Affairs Home Improvement Contractor (HIC) license.
Collect Written Project Estimates
Meet with at least three different contractors, and get written estimates that specify materials, labor costs, timeline, payment terms, cleanup and debris removal, and any warranty offered. This process will give you a good understanding of market rates for your project. Be wary of any estimates that come in significantly lower. This red flag could mean inferior materials, hidden costs or other shady dealings.
Complete the Project Paperwork
Make sure contracts spell out the details of the project, from the scope of work and materials used to cleanup and warranty. (See the above tip on written project estimates.) Verbal promises often aren’t legally binding. Double-check that proper permits have been issued. If the project requires government inspection, ensure that those inspections take place and that the inspector approves the work.
If the home is part of a neighborhood association or historic district, research any special requirements, such as project approvals or restrictive covenants.
Check Contractor Credentials and Insurance
Make sure the contractor has the proper licensing and that the license is current. Check for complaints with the Better Business Bureau and elsewhere online (ex. Google, Yelp, etc.) Talk to the contractor’s references. If you already have a contractor or other tradesperson you trust, ask for recommendations.
Confirm that the contractor is bonded and insured. Review the certificate of insurance to ensure adequate insurance coverage, including workers’ compensation insurance—required even for sole proprietors. In addition, request that the contractor name you as a “primary” and “non-contributory” additional insured on the general liability policy.
Make Contractors Provide Required Tools and Equipment
A professional contractor needs to provide his or her own tools for the job. Offering use of your tools and equipment—like a ladder—may be helpful, but it can also expose you to risk if anyone is injured while using your things.
Notify Your Insurance Company
Your insurance company issued a policy based on your home when you bought the policy. Changes to your home may mean updates to your policy. In some cases, not updating the insurance company can mean a lower payout or even a denied claim if a covered peril, such as fire or theft, occurs later.
Ideally, tell the agent or broker before beginning the project. They can advise on what information, if any, your insurance company will need. They may also offer tips on reducing future premiums or adding necessary coverage when the project is complete
City Building Owners Insurance has specialized in protecting brownstones and other New York City real estate since 1976. For a free, no-obligation insurance review, please call us at 877-576-5200.
