What to Check Before Hiring a Contractor in California
A renovation takes over your house for weeks. The kitchen gets torn out. The bathroom stops working. Dust settles on everything you own.
Before any of that starts, there is a question worth settling first. Who is doing the work, and who pays if something goes wrong on your property?
Finishes usually tend to be more glamorous, whereas insurance may end up being more subtle. It is not uncommon for people to spend more time on selecting doorknobs than on ensuring that the contractor’s policy will indeed cover the work. This is the part of things that usually comes back to bite them.
Why Insurance Belongs on Your Renovation Checklist
A renovation brings people, equipment, materials, and money onto your property. A dropped beam can damage your neighbor's fence. A worker can get hurt. A subcontractor can cause water damage that is not discovered for weeks.
Insurance is one of several things worth checking before construction begins. It does not replace permits, a clear contract, or proper licensing. Those items handle different problems. Insurance handles the financial side of covered accidents when they happen anyway.
The time to ask questions is before you sign. Sorting out coverage after a problem has already occurred is a much harder conversation.
Start by Checking Who You're Hiring
Insurance is just one aspect of the issue. Before getting to that, it is best to get an idea of who you’re hiring.
Start with the license number. California contractors are listed with the Contractors State License Board, and the lookup takes a few minutes. Ask for references from projects that look like yours, not just any past job. When the written contract shows up, read it closely enough to confirm it names the contractor and spells out what the work includes.
Insurance sits alongside these steps. It is not a substitute for them. A contractor with good coverage but a vague contract is still a risk. So is a contractor with a solid contract and no insurance.
What Contractor Insurance Actually Covers
The policies involved in a renovation each address something different. Here is a plain-language version.
General liability: can address certain third-party claims involving bodily injury or property damage, subject to policy terms
Workers' compensation: relevant to employee injuries and California requirements
Commercial auto: relevant when business vehicles are used for the work
Tools and equipment / inland marine: can relate to contractor equipment and property used or transported for construction
Builder's risk: may be relevant to covered property and losses during construction, depending on the project and the policy
Professional liability: can be relevant when professional design or consulting services are part of the scope
What gets carried depends on the work being performed. Coverage needs depend on the project, the contractor, and the work being performed. The question is not whether the contractor has all of them. It is whether the coverage in place matches the work you are hiring them to do.
Ask to See Proof of Insurance
The certificate of insurance is where most of this conversation lands. It is a one-page summary of the policies a contractor carries, and it should be current. A verbal confirmation is not a substitute.
When the document arrives, check a few things:
The business name on the certificate should match the company you hired.
The policy dates should still be active.
General liability should appear, and workers' compensation should too if the contractor has employees.
If subcontractors are part of the job, look for anything on the certificate that speaks to them.
One limitation worth knowing. A certificate shows which policies exist. It does not prove the full scope of coverage, and it does not mean every scenario is included. If any line on the document raises a question, ask the contractor or an insurance professional to walk through it before work begins.
Seven Questions to Ask Up Front
You do not need to read policy language to ask useful questions. A short list covers most of what matters.
What types of insurance do you carry right now?
Will the coverage stay active while my project is running?
Does this kind of work fall inside your normal operations?
Do you use subcontractors, and how do you check their insurance?
Does our contract include anything specific about coverage?
If something is unclear later, who do I call?
The point is not to become an expert in insurance. It is to know who is covered for what before the first hammer swings.
Don't Forget About Subcontractors
Bigger renovations rarely stay with one crew. Electricians, plumbers, HVAC techs, roofers. Each trade brings its own people onto your property, and the general contractor may not do all of that work in-house.
This is where coverage gets interesting. A general contractor's policy covers their own operations. It does not stretch to cover a subcontractor who causes damage or injury. Most policies handle this by requiring subcontractors to carry their own insurance and to name the general contractor as an additional insured.
So ask how subcontractors get selected. Ask whether the contractor verifies their insurance and licensing where applicable. When several trades are moving through the same house over the same few weeks, that verification step does more work than almost anything else on the checklist.
Read the Contract Alongside the Insurance Information
The contract handles a different set of questions. Scope, payment terms, timelines, change orders, who is responsible for what. Look for the sections that address damage, site access, cleanup, permits, and subcontractors.
A contract can state a specific insurance limit, and that doesn’t mean the contractor's policy actually meets it. The certificate and the contract need to be read side by side, because one describes what was agreed and the other describes what is in force. If the wording is vague, or the project is large enough that the numbers are significant, a lawyer or an insurance professional is worth the fee.
Before a renovation gets underway, make sure the contractor is properly insured for the work involved. That includes checking whether the contractor carries appropriate coverage, often arranged through an insurance agency for California contractors familiar with the needs of the trade.
Keep the Documentation
Keep the contract, the insurance documents, the permits, the invoices, and any correspondence that matters. Store them somewhere you can find them in a hurry, because at some point you will need to.
If the project changes in a meaningful way, ask whether the insurance still reflects the work. New scope, new subcontractors, or a shift in the schedule can all change what coverage is actually needed.
Documentation does not prevent problems. It makes them easier to resolve when they come up.
Before You Sign
A short checklist for the week before construction starts:
Verify the contractor's licensing information
Check references and comparable projects
Request current insurance documentation
Ask about subcontractors and how their coverage is verified
Review the contract carefully
Clarify who is responsible for permits and site-related issues
Keep copies of all project documentation
Bottom Line
A proper renovation starts long before anyone picks a tile. It starts with knowing who is walking through your front door every morning and what happens if something goes sideways.
Check the contractor. Read the contract. Ask about insurance. Keep the paperwork. None of that removes the risk of a renovation. What it does is make sure the risk lands on the right shoulders when something goes wrong.
Our writers like to find the latest trends for home decor. We launched the award-winning Seasons in Colour in 2015 and the luxury property and interior decor blog www.alltheprettyhomes.com in 2024 to cover all your interior design, travel and lifestyle inspiration needs. Download our free bathroom renovation guide here.
