It is important that a general contractor carry liability insurance. In many states, it is a requirement.

If you live in a state that does not require that contractors carry liability insurance as a condition of licensing, you need to find out whether the contractor you plan to hire carries the appropriate level and types of insurance.

You will need to check with your homeowners insurance provider when hiring an uninsured contractor because a number of policies require you to carry liability and other types of insurance for the duration of the remodeling project. Your insurance agent will be able to help you review the types of work involved in your project, the people who will do the work, and the kinds of insurance carried by your contractor.

You might need or want special insurance to cover damage to stored construction materials, damage to the house during the remodeling process, injury to workers, injury to uninvited people at the remodel site, and special high-risk activities that increase your liability for damage and injury (such as roof cleaning, and use of potentially hazardous materials or processes).

Be sure that your contract spells out the types of insurance the contractor carries and any specific insurance you need to carry during the remodel.