This week we talked with Attorney Helene Gerstile, who is admitted in both Rhode Island and Massachusetts talking about how to avoid contractor disputes. Each year about 26 million Americans spend more than $180 billion on improvements to their homes, according to the National Association of Home Builders, and The Consumer Federation of America and the National Association of Consumer Agency Administrators survey finds home improvement and contractor-related complaints consistently among the top five consumer gripes. If you're going through a major remodel, you may want to think about renting or staying with relatives or friends, especially if your kitchen appliances are inaccessible during the project. But if you do that, be sure you stay in close contact with your contractor and that you check on the progress on a regular basis. Also, check your insurance coverage BEFORE the work begins. If the new work is damaged or destroyed before additional coverage takes effect, you could be responsible for repair costs, according to the Insurance Information Institute. Home insurance policies typically require that you insure your home to at least 80 percent of its replacement cost. About 25 percent of remodeling projects result in a home value increase of at least 25 percent, according to the Independent Insurance Agents of America. And, of course, never make the final payment until the job is complete. Here are some of the talking points from the show: 1: Make sure you have everything in writing, and have a lawyer look it over. 2: Ask the contractor what specifically will be done, when, and how long each task will take. 3: Expect the unexpected- the bigger the project, the greater the potential - like late deliveries, strikes, wrong parts, adverse weather, on-the-spot changes, and the like. 4: Keep your cool. Staying calm and flexible is key in ensuring a smooth project. 5: Treat the workers nicely. A cup of coffee or a cold iced-tea on a hot day goes a long way. 6: Make sure you are dealing with a reputable contractor, fully licensed and insured. Referrals from friends are great for this.This Week’s Real Estate Insight: A major renovation project does not have to be a nightmare, a few simple steps to prepare can save a lot of hassles down the road.
