Can Property Insurance Help When Dealing with a Bad Contractor?

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A bad contractor can be a headache and a half. You paid good money for them to make repairs or changes to your home, and they messed it up. If you suffered from a bad contractor job or a bad handyman job, you may wonder if your property or homeowner insurance can help.

It Depends

Insurance for bad construction is so fickle. Different providers cover different incidents, and it’s important to view your insurance policy to see if you qualify. Some insurance, especially if it states its insurance for bad construction could help protect you against a bad contractor job or bad handyman job, while others will exclude poor work as a form of property damage.

Some insurance may have accident coverage that will help pay for the repair costs should the contractor mess up, but you may need to make sure your contractor has insurance to begin with. Usually, it needs to be in the form of property damage, a definition that some providers may interpret differently.

Most insurance, however, does not cover poor work, like improper installation. For us, that’s a little unfair; you should be protected against poor work to the roof over your head, but that’s how the insurance game happens.

Plus, you know how insurance companies are. When you need money, they do everything they can to avoid paying you, even if you’re covered. Selecting a reputable company that has a history of paying for contractor mistakes is a good move, but even then, you may get some bad luck. In that case, you may need to take another measure.

Taking Other Measures

In many cases, you may need to take action against bad contractors yourself. Sometimes, a bad contractor review on Yelp or another website is all it takes. A bad contractor review can make an honest contractor want to fix the problem. Sometimes, good contractors mess up.

In other cases, you may take the “sue contractor” route and try to take legal action. Always look for ways a contractor violated your contract, and gather as much evidence as you can before you take the “sue contractor route.”

Prevention is the Best Key

The best way to defeat a bad contractor is not hiring them at all. Websites such as give you a list of bad contractors and their violations. A good list of bad contractors should allow you to search by area, and you can see if the contractor you’re considering has made the unfortunate cut.

Checking in with the Better Business Bureau, as well as your local state licensing agency, is important as well. You can see if your contractor is truly licensed, and if they have insurance.


We all wish that our insurance would cover everything bad that happens to us, but sadly, your property insurance may not cover bad contracting work. Do your research beforehand, see what actions you can take, and above all else, don’t hire a bad contractor in the future.


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