Property damage during a renovation happens — a cracked tile, a scratched hardwood floor, a broken window, a wall damaged by a misplaced cut. What matters is what happens next. A contractor with proper insurance and a professional approach will take responsibility and make it right. One without those things will leave you paying for damage you didn’t cause.

Here’s what to know before it happens — and what to do if it does.

“The single most important thing a homeowner can do before work starts is confirm that the contractor carries adequate liability insurance and get the certificate in hand. If something goes wrong and there’s no insurance, your only recourse is the contractor’s willingness to pay — and at that point, you’re in a negotiation with someone who has every reason to minimize what happened.”

— Eleanor Hsu, licensed home inspector and residential construction consultant with 13 years of experience in post-renovation inspections across the GTA

If a Contractor Damages Your Property: Step by Step

1. Document the damage immediately

Before anything is cleaned up or repaired, photograph and video the damage from multiple angles. Note the date, what work was being done at the time, and who was on site. This documentation is essential for any insurance claim or dispute.

2. Notify the contractor in writing

Tell the contractor about the damage in writing — by email or text — so there’s a record. Don’t rely on a verbal conversation. Describe what was damaged, when it happened, and what you believe the cause was. Ask for their response in writing as well.

3. Ask how it will be repaired

A contractor who takes responsibility will provide a clear plan: who will do the repair, when, and at no cost to you. Get the plan in writing before repair work begins. If they’re bringing in a subcontractor to repair the damage, ask who that person is and whether they’re covered by the contractor’s insurance.

4. Understand the insurance process

If the damage is significant, it will likely go through the contractor’s general liability insurance. Ask the contractor to initiate the claim and provide you with the claim number and the adjuster’s contact information. You have the right to communicate directly with the insurer if needed.

5. Know what to do if the contractor won’t take responsibility

If a contractor disputes liability, minimizes the damage, or refuses to address it, your options include: filing a claim directly against their liability insurance, filing a complaint with the regional licensing body, pursuing the matter through small claims court, or — if the contractor is a member of a trade association — filing a complaint through that body.

What Happens If the Contractor Has No Insurance?

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What Happens If a Contractor Damages Your Property? 1

This is the scenario you most want to avoid — and it’s exactly why verifying insurance before work begins is so important.

Without liability insurance, your only recourse is directly against the contractor — through negotiation, mediation, or legal action. None of those processes are fast, and none of them are guaranteed to produce results, especially if the contractor is a sole proprietor with limited assets.

In the meantime, your own home insurance policy may cover some forms of contractor-caused damage, depending on your policy terms. Contact your insurer and describe what happened — they can advise you on whether your policy provides any coverage and whether making a claim is advisable.

Preventing This Before It Happens

The best protection against contractor-caused damage is preparation:

  • Verify the contractor’s general liability insurance before work begins — get the certificate and call the insurer to confirm the policy is active. See: Questions to Ask a General Contractor About Licensing and Insurance
  • Confirm coverage amounts are adequate for your project
  • Document the condition of your home before work starts — photos of floors, walls, fixtures, and any items of value near the work area
  • Include a clause in your contract specifying the contractor’s responsibility for property damage during the project

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