Is My Home Improvement Deposit Protected?

Paying a deposit to a builder or contractor is normal — but it can also be the point where a homeowner is most exposed if the business stops trading before the work is completed.

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Deposit protection can form part of an Insurance Backed Guarantee and is designed to reduce that risk.

 

Before paying a deposit, ask three simple questions:

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1. Is my deposit protected by an Insurance Backed Guarantee?

2. Can I see the policy document?

3. What happens to my deposit if you're unable to start the work?

 

Don't rely on a verbal assurance — make sure you have the paperwork.