Is My Home Improvement Deposit Protected?
Paying a deposit to a builder or contractor is standard practice — but it's also the point where homeowners are most exposed if a business ceases trading before work starts or finishes. Deposit protection, arranged through an insurance-backed guarantee before the contract begins, is designed to reduce that exposure.
Where a HIG-registered contractor has arranged deposit protection, cover lasts for 90 days from the date shown on the Deposit Protection Policy document. That document — not a verbal assurance — is what confirms cover exists.
Three questions to ask before paying any deposit:
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Is this deposit protected by an insurance-backed guarantee?
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Can I see the policy document before I pay?
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What happens to my deposit if you're unable to complete the work?