When planning a home renovation, it’s tempting to cut costs wherever possible. In fact, a survey from Technical Safety BC found that 32% of British Columbians would consider doing a home repair or renovation projects without hiring a licensed contractor. Though unlicensed contractors or opting to do it yourself may seem to save you money in the short term, the risks far outweigh the benefits. See below for five risks associated with not opting for a licensed contractor for your home renovation.
Safety
Renovations and repairs can often be dangerous work, with an increased risk of accidents and injuries. Licensed contractors have the necessary training and accreditations to ensure they are performing their work in the safest manner possible, whilst unlicensed contractors do not. In the event of an injury occurrence whilst on the job, homeowners may be liable for any injuries resulting from the work of unlicensed contractors. Without liability insurance held by the contractor, you may end up paying for medical bills, as well as lost wages in the absence of compensation coverage from the contractor.
Property Damage
An unlicensed contractor may not have the required knowledge to assess and mitigate risk of renovations that may not be visible on the surface. This includes risks such as structural damage, electrical hazards, pipe damage, and roof leaks. Compromising any of these areas can lead to extremely costly repairs.
Loss of Warranties
Hiring an unlicensed contractor can void warranties on many products including HVAC systems, roofing, and flooring, which may require installation by a licensed professional. Work undertaken by an unlicensed contractor may lead to a refusal to honor the warranty from the manufacturer in the event of a malfunction. Whilst licensed contractors often provide guarantees on their work, unlicensed contractors or doing it yourself offers you no protection, leaving you liable for any damages.
Voided Insurance
Many homeowner insurance policies do not cover damages caused by unlicensed work. Any damage or loss incurred from faulty work performed by an unlicensed contractor would be void. Some home warranties may even have clauses stating that unauthorized repairs or modifications may invalidate coverage. This leaves homeowners liable for damages that could far exceed the cost of hiring a licensed contractor.
Property Resale
When looking to sell your home, sub-standard renovations can be easy to spot during inspections, leading to lower offers from buyers. If renovations aren’t up to code, you may be forced to redo the work legally before selling. The presence of low-quality renovations may deter buyers from your property in general, decreasing your buyer market and increasing the difficulty of selling your property.
If you are looking to buy or sell your home this year, but don’t know where to start, we are happy to help you. Visit our website here, or contact one of our trusted VIRANI advisors here and let’s get started.