Will home insurance cover money stolen by a contractor?
"I hired a contractor to make an addition to my home. He asked for $29,000 to cover materials and labor. Once I gave him the money, he vanished. Will home insurance cover this theft?
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Answered on Apr 06, 2021
“On most home insurance policies, there is a specific limit to how much they will pay out for stolen money. This limit usually falls from $200 to $1,000.
Because this contractor did not do any work to the home and just stole the money, typically your home insurance will not pay out beyond the limit. If the contractor had done some damage to the home, you might be able to claim the damage, but your insurance carrier would not cover poor workmanship.
In this case, it is important to do your research before hiring a contractor. Only go with well-known companies or individuals who have solid references. This may cost more, but in the long run having work done to your home is a major investment and cheap isn’t always better! “
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