Why Homeowners Should ALWAYS Request a Certificate of Insurance

Before hiring a contractor, mover, landscaper, cleaning company, or other service provider, ask for a current certificate of insurance (COI). This simple step can help you confirm that the company carries insurance and give you a clearer starting point for evaluating the risk of work being done at your home.

At Hedges Insurance, we encourage homeowners in Lynchburg and throughout the Blue Ridge of Central Virginia to make insurance verification part of their hiring process. A COI is not a substitute for a written contract or the insurance policy itself, but it can help you avoid relying on verbal assurances that a business is insured.

Why a Certificate of Insurance Matters

Inviting a company onto your property creates the possibility of accidental damage or injury. A moving crew could damage a doorway, a contractor could accidentally cause water damage during a renovation, or a landscaping company could damage a fence, vehicle, or neighboring property.

If the company is uninsured or does not have the right coverage that applies to the specific work you're having done, you may face delays, disputes, or an unexpected claim against your own homeowners insurance. Requesting a COI before work begins and before signing a contract allows you to ask questions while you still have the freedom to choose another provider.

This is especially important for larger projects, including roofing, remodeling, tree removal, excavation, painting, flooring installation, moving, and any work involving employees, equipment, ladders, vehicles, or access to your home.

Make Sure You Are Listed as the Certificate Holder

A certificate of insurance should identify you as the certificate holder. That means the document should include your name and, when appropriate, your property address in the certificate holder section.

Why does this matter? A certificate that simply shows the business has insurance is less useful if it was issued for someone else or for a prior job. When your name is listed, the certificate is specifically being provided in connection with your project or service.

Before accepting a COI, compare the certificate holder information carefully with your contract. If the work involves a rental property, trust, LLC, or multiple property owners, make sure the proper legal name is included. Small details can matter when there is a question later about who requested the documentation and for what project.

Confirm the Coverage Fits the Work Being Performed

Not all insurance policies cover every type of work. A company may carry general liability insurance, but that does not automatically mean every service it offers is covered in every circumstance. The nature of the project, the location, the equipment used, subcontractors, vehicles, and specialized services can all affect whether coverage applies.

Ask the company to have the certificate reflect the operations or scope of work being performed at your property when that information is available. For example, if you are hiring a tree service, roofing contractor, mover, or excavation company, the certificate should clearly support the type of business and work you are hiring them to perform.

It is also smart to ask whether the company uses subcontractors. If it does, ask whether those subcontractors are insured as well. A business’s COI may not provide evidence of insurance for every independent company that appears at your home.

Keep in mind that a COI is generally evidence that coverage was in place on the date it was issued; it is not the insurance contract and does not change the policy’s terms, exclusions, or limits. If a project carries significant risk, ask the contractor whether additional documentation or policy endorsements are available to confirm the needed protection.

Request the Certificate Directly From the Agent or Carrier

One of the most important parts of this process is how you receive the certificate. Do not rely only on a PDF, screenshot, or paper copy forwarded by the company you are hiring. Ask for the COI to come directly from the business’s insurance agent or insurance company.

Receiving it directly helps reduce the risk of accepting an outdated, altered, canceled, or incomplete document. It also gives you a direct point of contact if you have questions about the policy dates, insurer name, types of coverage, or operations listed on the certificate.

A legitimate business should understand why a homeowner is asking. Requesting a current COI is a normal, professional part of hiring a company to work on or move items in and out of your home.

What to Review on the Certificate

When the certificate arrives, take a few minutes to review the basics. You do not need to become an insurance expert, but you should make sure the information matches the company and project you are considering.

• Named insured: Does the business name match the company you hired?
• Certificate holder: Are you and, if appropriate, your property address listed correctly?
• Policy dates: Is the coverage active for the dates the work or move will take place?
• Types of coverage: Does the certificate show relevant coverage, such as general liability or commercial auto coverage when vehicles will be used?
• Scope of operations: Does the information support the work the company says it will perform?
• Agent or carrier contact information: Is there a clear source you can contact to verify questions?

If something does not look right, pause before allowing work to begin. Ask for clarification from the agent or carrier that issued the certificate rather than making assumptions based on a contractor’s explanation alone.

Do Not Overlook Your Own Homeowners Coverage

Verifying a vendor’s insurance is an important layer of protection, but it does not replace your own home insurance. Your homeowners policy may respond differently depending on the cause of damage, your deductible, exclusions, and the policy terms.

Hedges Insurance can help homeowners review their home insurance coverage before a major project, move, or renovation. Our team can discuss questions to consider, help you understand your current policy, and make sure your coverage continues to reflect your home and belongings.

Virginia homeowners should also keep records of contracts, certificates, invoices, photos, and communications related to the work. Good documentation can be valuable if a concern arises after the job is completed.

FAQ

Is a certificate of insurance the same as being fully protected?

No. A COI is useful evidence of insurance, but it is not the policy itself and does not guarantee that every loss or situation will be covered. The actual policy terms, endorsements, limits, and exclusions determine coverage.

Should I request a COI for a small job?

It is a good practice whenever a business will be working in, around, or transporting property from your home. The level of documentation you request may depend on the size and risk of the project, but asking early is usually easier than trying to resolve an issue later.

What if the company says it does not have insurance?

Consider the risks carefully before hiring them. If the business causes property damage or someone is injured, you may have fewer options for resolving the loss and any damages may come from your pocket.  You may decide to seek an insured provider instead.

What if the certificate does not mention the specific work?

Ask the issuing agent or carrier whether the company’s coverage applies to the services being performed at your property and ask for the information to be provided on the COI. For higher-risk projects, ask whether additional documentation is needed to confirm the scope of work.

Who can help me review my homeowners coverage before a project?

Hedges Insurance is here to help homeowners in Lynchburg, VA, understand their home insurance options and prepare for the unexpected. A conversation before work begins can help you make more confident decisions about protecting your home.