Remodeling Contractor Insurance in Washington State

Remodeling contractors face a liability environment that is fundamentally different from new construction, and in many ways more challenging. The defining factor is that you're working inside someone's existing home — often while they're still living in it. Every room you enter is filled with personal property, finished surfaces, and functioning systems that can be damaged during renovation. A demolition crew removing a kitchen wall sends dust through the entire house, coating furniture and electronics. A plumber disconnecting old supply lines causes a flood that damages hardwood floors two rooms away. These aren't catastrophic incidents, but they're the everyday reality of remodeling, and they generate a steady stream of property damage claims.

Discovering hidden conditions is a risk unique to renovation work that can turn a profitable project into a financial disaster. You open a wall to reframe a doorway and find black mold growing across the studs. You pull up tile in a bathroom and discover the subfloor is rotted through. You start removing old insulation and realize it contains asbestos. Each discovery forces a project pivot — additional costs, timeline extensions, potential health hazards, and sometimes a complete change in scope. If you don't handle these discoveries properly, or if you disturb hazardous materials without proper abatement procedures, you face regulatory violations and health-related liability claims.

Water damage is the signature peril of bathroom and kitchen remodeling in Washington. Any time you disconnect and reconnect water supply lines, drain lines, or fixtures, you're creating temporary vulnerabilities in a system that operates under pressure. A fitting that weeps slowly behind a newly tiled wall can cause thousands of dollars in mold damage before anyone notices. A shower pan that wasn't properly waterproofed will leak into the floor below and may not show symptoms for months. These completed operations claims — arising after you've finished the work and collected payment — are among the most common and expensive claims remodeling contractors face.

The occupied-home environment also amplifies bodily injury exposure. Homeowners and their children navigate around construction zones, exposed wiring, open floor penetrations, and sharp debris. Temporary barriers and warning signs help, but accidents happen. Additionally, Washington's construction defect statute (RCW 64.50) gives homeowners up to six years to bring claims for defective remodeling work, meaning the kitchen renovation you complete today could generate a lawsuit years from now if cabinets pull away from walls, countertops crack, or moisture issues develop behind new finishes.