Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 12 years ago on . Most recent reply

User Stats

961
Posts
277
Votes
Will F.
  • Investor
  • Los Angeles County, CA
277
Votes |
961
Posts

Liability w/ Unlicensed Contractors and Handymen - insurance?

Will F.
  • Investor
  • Los Angeles County, CA
Posted

So the cost of unlicensed contractors for anything from painting to plumbing is much cheaper than licensed and bonded contractors. I basically wouldn't be in business if I hired full price contractors

For our rehab we use a lot of handymen and unlicensed "contractors" who do similar work for fractions of the price.

I have a general liability insurance for my properties and was wondering if something were to go wrong if I would be covered. If one of the workers got injured could they sue me, and if so would general rental liability insurance cover this?

Also what if something were to go wrong with their work and a tenant got injured? Would the insurance try to not pay out if it could be traced back to one of my unlicensed contractors?

I had read somewhere that insurance companies generally cover with their insurance

What other things should I do to protect my investments and hard work?

I was wondering if any seasoned vets want to give their opinions?

Most Popular Reply

User Stats

339
Posts
126
Votes
Luis A.
  • Real Estate Investor
  • Atlanta, GA
126
Votes |
339
Posts
Luis A.
  • Real Estate Investor
  • Atlanta, GA
Replied

Let's make sure we distinguish between licensing and insurance. Not all contractors are required to be licensed (at least not in my state) but everyone should be insured. In my state only GC's, HVAC, plumbers and electricians are required to be licensed. And I believe (correct me if I am wrong) that licensing will require insurance.

You can always ask them to sign a release of liability but in all honesty I am not sure how much that protects you. I figure it's better than not having it.

Can they sue you?...Almost anybody can sue you for almost anything the question is, will they?

My experience has been that insured workers will be more expensive. But I try to build that cost into my estimates. I'll be honest and tell you that I might have hired unlicensed workers when I did not know better. But I assure you I will not let someone get up on a roof that is not licensed.

Loading replies...