There are plenty of great reasons to remodel your home. If you have a kitchen or bathroom that desperately needs updating, or perhaps have another child on the way, adding an addition to your home or remodeling an existing part of your home can be a great way to make your home into the residence you need it to be without going through the process of moving and buying a different home. In many cases, the remodeling you do will pay for itself in the long run because of the increased value in your home. Wanting to do a remodeling project and actually making it happen are two entirely different things. If you’re not careful, your remodeling project could turn into a major headache rather quickly. Fortunately there are several steps you can take to protect yourself so that your home remodeling project doesn’t turn into a disaster.

You have to be extremely careful when choosing a contractor to remodel your home. Don’t go with anyone who drops fliers off in your mailbox or rings your doorbell and tells you that your gutters or roof need fixing. If the remodeling job is relatively minor, you can ask your friends and neighbors if they’ve used anyone recently and how their experiences were. If your remodeling project is larger and will cost at least $10,000, get a recommendation from the National Association of the Remodeling Industry (NARI), or from the Remodelers Council of the National Association of Homebuilders.

When reviewing candidates to remodel your home, ask for information about the last five homes they’ve worked on, a description of the work that they did, the date they started the job, the date they finished the job, and how to contact the owner of the home. They should have this information readily available, if they don’t have it or won’t provide it to you, go with another contractor.

Be sure to ask what kind of insurance the contractor carries. Hire people who have a current certificate of insurance to protect yourself in the event that someone is injured while work is being done on your home. You can also protect yourself by making sure there is sufficient liability coverage for anyone who gets hurt that is uninsured on your property. You’ll want to have at least $1 million in liability coverage before you consider a contractor that doesn’t have a current certificate of insurance. If you have less coverage than that, you can get an umbrella policy which will provide additional liability for practically nothing.

Do not sign the standard builder’s supply house contract for any remodeling job. They are almost always slanted in the favor of the contractor. Instead, opt for a contract from the American Institute of Architects (AIA). This will make sure the contract is neutral to both parties.

If a contractor wants a large up-front payment, don’t go with them. Come up with a reasonable timeline and schedule of payment in which the contractor is paid as the work is completed. In your contract, make sure there are some penalties against the contractor in the event that they do not complete the job on time.

Remodeling your home can be an exciting experience, but it can quickly turn into a disaster. Make sure to follow these steps to keep your financial interest protected when remodeling your home.

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