What to Do If a Contractor Damages Your Home (Insurance Steps)

Hiring a contractor for home renovations or repairs can be a smart investment until something goes wrong. Whether it’s a burst pipe, a shattered window, or structural damage caused by negligence, knowing what to do if a contractor damages your home can save you thousands and protect your rights.

Here’s a step-by-step guide to help you respond promptly and effectively, both legally and insurance-wise.

Step 1: Stop Work Immediately

If you notice damage accidental or otherwise pause all ongoing work until the issue is documented and addressed.

Prevents further damage
Creates a clear timeline
Signals to the contractor that you’re treating the matter seriously

Step 2: Document the Damage Thoroughly

Before any repairs are attempted, document everything. Strong documentation is critical for both insurance claims and legal proceedings.

What to gather:

Clear, timestamped photos or videos of the damage
Written description of what happened and when
Names of workers involved (if known)
Original contract and scope of work
Receipts for materials or down payments

Tip: Take wide-angle photos to show the damage in context, and close-ups for detail.

Step 3: Contact the Contractor Immediately

Inform the contractor of the damage in writing (email is best for a paper trail). Remain factual and professional avoid threats or emotional language.

What to say:

Describe the damage
Ask how they intend to resolve it
Request their general liability insurance information

If the contractor is licensed and insured (as they should be), their liability insurance is typically responsible for damages they cause.

Step 4: Ask for Proof of Insurance

If you haven’t already, ask for and verify the contractor’s general liability insurance policy.

You should receive:

Name of the insurance company
Policy number
Coverage limits
Expiration date

Red flag: If they cannot provide valid proof, that’s a sign of a potentially uninsured or underqualified contractor.

Step 5: Notify Your Homeowners Insurance Provider

If the contractor refuses to cooperate, or the damage is severe, contact your home insurance provider right away.

Some policies cover accidental damage caused by contractors under the dwelling coverage portion
Others may subrogate the claim paying you first, then pursuing reimbursement from the contractor’s insurer

Your insurance agent can tell you if it’s better to:

File under your policy and let them deal with the contractor’s insurer, or
Wait for the contractor’s insurer to respond

Step 6: File a Claim (Contractor’s or Yours)

Depending on the situation, you’ll file:

A claim with the contractor’s insurance company
Or a claim with your own home insurance provider

In either case, include:

Documentation from Step 2
Correspondence with the contractor
Estimates for repairs

Important: Don’t begin repairs until your insurer gives you the green light. Doing so could invalidate your claim.

Step 7: Consider Legal Action If Necessary

If neither the contractor nor their insurer cooperates:

File a complaint with your state’s contractor licensing board
Consider hiring a home insurance attorney for guidance
→ When to Involve a Home Insurance Lawyer

If your damage claim is below a certain amount, you may be eligible to sue in small claims court without hiring a lawyer.

Timeline Summary

Action	Ideal Timeline
Document damage	Immediately
Contact contractor	Within 24 hours
Notify insurer	Within 2–3 days
File insurance claim	Within 7–14 days
Begin approved repairs	After claim approval

Bonus: How to Avoid This Situation Next Time

Always verify licenses and insurance before hiring
Request to be added as an “additional insured” for larger projects
Get multiple quotes and read reviews
Never pay in full upfront

Final Tip

Damage from a contractor may not always be covered by your homeowners insurance especially if it stems from poor workmanship or maintenance issues.

Learn what your policy might exclude in:
What Homeowners Insurance Doesn’t Cover (2025 Edition)