Does Homeowners Insurance Cover Handyman?

Homeowners insurance protects property owners from unforeseen events. While it covers many common perils, its application to handyman services is nuanced. This article clarifies typical protections and limitations homeowners may encounter.

Understanding Homeowners Insurance Coverage

A standard homeowners insurance policy, often an HO-3, includes several components protecting your property and personal liability. These coverages define how incidents involving handyman work might be addressed.

Dwelling Coverage (Coverage A) protects the physical structure of your home, including its foundation, walls, roof, and attached structures like a garage or deck. Other Structures Coverage (Coverage B) extends protection to detached structures on your property, such as sheds, fences, or detached garages.

Personal Property Coverage (Coverage C) insures your home’s contents, including furniture, electronics, and clothing, if damaged or stolen due to a covered event. Personal Liability Coverage (Coverage E) provides financial protection if you are found legally responsible for bodily injury or property damage to others. This includes incidents on your property or caused by you or a household member elsewhere.

Medical Payments to Others (Coverage F) helps cover medical expenses for individuals injured on your property, regardless of fault. This coverage has lower limits and is intended for minor injuries to guests, not permanent residents or individuals contracted for work if the injury relates to their duties.

Property Damage and Handyman Work

If a handyman accidentally causes damage to your property, such as dropping a tool and damaging a floor or breaking a window, your dwelling or personal property coverage might apply. This accidental damage is treated similarly to other sudden and accidental perils covered by your policy.

Homeowners insurance does not cover damage resulting directly from poor quality work, improper installation, or defective materials used by a handyman. For instance, if a newly installed pipe leaks due to incorrect installation, your policy may cover the resulting water damage to walls or flooring. However, it will not cover the cost to repair or replace the faulty pipe itself. The policy covers the consequences of an event, not the cost of correcting substandard work.

Damage that develops over time due to a handyman’s faulty work, such as a slow leak from a poorly sealed roof repair, falls under the faulty workmanship exclusion. Insurers view such issues as maintenance or construction defects rather than sudden, accidental perils. While the policy might cover ensuing damage that is a direct result of a covered peril caused by the faulty work, it will not cover the cost of rectifying the defect itself.

Injuries to a Handyman on Your Property

Personal Liability Coverage (Coverage E) may apply if a handyman is injured on your property due to a condition for which you are found negligent. For example, if an unsafe railing or unlit stairs, which you knew about and failed to address, causes the handyman to fall, your liability coverage could help cover their medical expenses or legal costs if they sue.

Homeowners have a duty to maintain a reasonably safe environment for invitees, including handymen. If your negligence contributed to the injury, your policy’s liability coverage protects you from the financial burden of such claims. This coverage helps with legal fees and potential settlement amounts.

Medical Payments to Others coverage (Coverage F) provides limited coverage for minor injuries a handyman sustains, regardless of fault. This “no-fault” coverage helps pay for immediate medical expenses like ambulance rides or doctor visits. However, it is not intended for injuries to individuals contracted to perform work if the injury is directly related to their job, and it does not cover lost wages or extensive medical care. If the handyman is an employee of a company, their employer’s workers’ compensation insurance covers their injuries, not your homeowners policy.

Important Considerations Before Hiring

Before engaging a handyman, verify they carry their own insurance policies. Requesting proof of their General Liability insurance is important, as this policy covers property damage or injuries they might cause to others while working on your premises.

Inquire about their Workers’ Compensation insurance, especially if they have employees. If a handyman or their employee gets injured on your property without their own workers’ compensation coverage, you, the homeowner, could be held liable for their medical bills and lost wages. Many states consider uninsured handymen as your de facto employees, shifting liability to you.

Establish a clear, written contract before any work begins. This contract should detail the scope of work, payment terms, project timeline, and specific clauses regarding liability and insurance. A well-defined contract helps prevent disputes and clarifies responsibilities should an issue arise. Damage from work performed without necessary permits may impact your homeowners insurance coverage. Insurers may deny claims related to unpermitted work because it suggests negligence or a lack of adherence to safety standards and building codes.

Homeowners insurance is not a maintenance plan. It will not cover damage from normal wear and tear or a lack of routine maintenance. Your policy is designed for sudden and accidental losses, not for home upkeep. If an incident occurs, promptly report it to your insurer and, if applicable, to the handyman’s insurance provider.