Sounds more like this contractor doesn't have insurance...

I'd not even consider this guy. There is some underlying problem there.

Even if he is limited by his insurance as to the types of jobs he can do, he can always purchase an inexpensive rider to cover your job if he really wanted it.

I suspect he is not licensed for the type of work you want to have done and therefore not legally capable of obtaining the proper permits.

Find someone else.

The key word in this statement is "attached". The question is, attached to what?

Most building codes and consequently most construction insurance policies list "Residential" as a single family dwelling structure not exceeding three stories in height or a multi-family dwelling not to exceed three living units.

If you are adding a 4th floor or if your living space is part of a larger structure with an attached commercial property such as a small retail store, or if the structure has four or more living units it would be classified as a "Commercial Residential Unit" and would require both a commercial license and commercial insurance to work on it.

With that in mind, although the contractor may not have explained in detail, he or she may have been perfectly honest in thier reply.

You should check with your home owners insurance. When I started my project, I called my insurance co. and asked what would happen if an uninsured worker was hurt in my home. At first the women on the phone gave me the same story you always hear, "carefully check documentation of any contractor, bla bla bla." I asked but what would happen? She checked my policy and got back to me. I am covered for over a million dollars. For the 14 years I've been living here I've been paying for this coverage. Why pay for it again?

We are talking about liability insurance, not to be confused with credability, integraty or competence. It just means that he's paying for insurance. It's not like the insurance company is has screened him. They aren't not vouching for his work.

Don't get a false sense of security because a contractor has insurance. I'd rather know that I'm covered by my company. More than that, check out references.

Here's the deal, folks, even if he shows you a certificate of insurance, write down the policy number and call his insurance company to see if he does indeed have a policy in effect.

Some guys don't carry, but they'll give a bogus policy number, or even sometimes a REAL policy number from some other contractor that has a legitimate policy.

Other than that, I agree with lazypup. Some guys are insured for single-family residential only.

Mongo