Major Home Repair
Get the work done right, at a fair price, without blowing your budget or your timeline — and without learning expensive lessons that experienced homeowners already know.
Your Checklist
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First 24–72 hours
Assess the full scope before calling contractors
If it's emergency damage (flood, roof failure, fire), stop the bleeding first — turn off water, cover exposed openings, document everything for insurance before any cleanup or repair work begins.
File a homeowners insurance claim if applicable
For damage caused by a covered event (storm, burst pipe, fire), file a claim promptly. Your insurer will send an adjuster. Do not make permanent repairs until the adjuster has documented the damage.
Document all damage with photos and video
Walk through the entire affected area and document everything — including contents and any pre-existing damage. This documentation protects you in an insurance dispute and helps contractors scope the job accurately.
Determine if the home is safe to occupy
For structural damage, flooding, fire, or gas issues, contact your local building department or a structural engineer before occupying the space. Don't assume it's safe because it looks fine.
Never authorize permanent repairs before the insurance adjuster visits
Starting repairs before an adjuster documents the damage can void your claim or severely reduce the payout. Temporary protective measures (tarps, water extraction) are fine — but not permanent fixes.
Be skeptical of "storm chasers"
After natural disasters, unscrupulous contractors appear in neighborhoods offering quick repairs, often for cash. Avoid anyone who shows up unsolicited, asks for large upfront payments, or can't provide a local license.
Milestones
This Week
Days 3–14
Get at least three written contractor bids
Never accept the first bid. Get written estimates that itemize labor and materials separately. Bids that seem dramatically low often mean corners are being cut or the contractor plans to add change orders later.
Verify contractor licensing, insurance, and references
Your state's contractor licensing board lets you verify a license online. Ask for proof of general liability and workers' comp insurance. Call references and look at similar completed projects.
Determine what permits are required
Most structural work, electrical, plumbing, and HVAC changes require permits. Your contractor should pull permits — if they offer to skip permits "to save money," walk away. Unpermitted work causes problems at resale and with insurance.
Review your financing options
Large repairs may exceed your emergency fund. Options include a home equity line of credit (HELOC), home equity loan, personal loan, or contractor financing. Compare rates — contractor financing is often expensive.
Get a pre-construction home inspection for major remodels
For significant remodels, an independent home inspector can identify hidden issues — asbestos, lead paint, structural problems — before you start opening walls. Discovering these mid-project is far more expensive.
Never pay more than 10–30% upfront
Reputable contractors require a deposit (typically 10–30%) to schedule the job and order materials. Anyone demanding 50%+ upfront or full payment in advance is a red flag — especially for large projects.
Understand your state's lien laws
If your contractor doesn't pay their subcontractors or suppliers, those parties can file a lien against your property — even if you paid the contractor in full. Consider requiring lien waivers before each payment.
Getting Resolved
2 weeks to 90 days
Structure your payment schedule around milestones
Tie payments to completed work, not calendar dates. A typical structure: deposit at start, 25–30% at rough-in inspection, 25–30% at drywall, final payment only after punch list is complete and you're satisfied.
Schedule required inspections at each phase
Building inspectors must approve work at specific phases (framing, rough-in, insulation) before walls are closed. Your contractor should schedule these — if they're skipping inspections, stop the project.
Keep a project log
Document every conversation with your contractor. Send follow-up emails confirming decisions made by phone. If disputes arise, your written record is your best protection.
Do a formal punch list walkthrough before final payment
Walk the entire project with your contractor before paying the final invoice. Document every incomplete or unsatisfactory item in writing. Final payment is your only leverage — don't release it until you're satisfied.
Collect all warranties and permit sign-offs
Get the final permit card, manufacturer warranties for all materials and equipment installed, and contractor warranty terms in writing. Store these with your other home documents.
Reassess your homeowners insurance coverage
Major additions or renovations can increase your home's replacement cost significantly. Contact your insurer to update your coverage limits so you're not underinsured after improving the property.
Milestones
What to Avoid
Common mistakes and pitfalls at each stage of this transition.
Never authorize permanent repairs before the insurance adjuster visits
Starting repairs before an adjuster documents the damage can void your claim or severely reduce the payout. Temporary protective measures (tarps, water extraction) are fine — but not permanent fixes.
Be skeptical of "storm chasers"
After natural disasters, unscrupulous contractors appear in neighborhoods offering quick repairs, often for cash. Avoid anyone who shows up unsolicited, asks for large upfront payments, or can't provide a local license.
Never pay more than 10–30% upfront
Reputable contractors require a deposit (typically 10–30%) to schedule the job and order materials. Anyone demanding 50%+ upfront or full payment in advance is a red flag — especially for large projects.
Understand your state's lien laws
If your contractor doesn't pay their subcontractors or suppliers, those parties can file a lien against your property — even if you paid the contractor in full. Consider requiring lien waivers before each payment.
Frequently Asked Questions
How do I know if my damage is covered by homeowners insurance?
Homeowners insurance typically covers sudden and accidental damage — storm damage, fire, burst pipes. It generally does not cover maintenance-related deterioration, flooding (which requires separate flood insurance), or earthquakes. Read your policy or call your agent before assuming coverage.
Should I use a general contractor or hire subcontractors myself?
Acting as your own general contractor can save 15–25%, but you're responsible for scheduling, coordinating subs, and managing compliance. This works well for simple projects. For anything involving multiple trades or permits, a GC's coordination fee is usually worth it.
What if the contractor abandons the job or does terrible work?
File a complaint with your state's contractor licensing board, which can pursue license suspension or revocation. You may also have recourse through small claims court, a surety bond claim, or a civil lawsuit. This is why references, contracts, and milestone payments matter — they're your protection.
How long should a major remodel take?
It depends heavily on scope, permit timelines, and contractor availability. Kitchen remodels typically take 6–12 weeks. Bathroom remodels 3–6 weeks. Additions 3–6 months. Build buffer time into your expectations — delays are normal, especially around inspections and material delivery. ---
Resources
State-by-state contractor license verification
Required reading if your home was built before 1978
Check if your property is in a flood zone
FHA Title I and other loan programs for home improvement