Sometimes homeowners who would insist on having a written contract for a major home renovation believe that getting a "cash deal" for small home repair projects is "OK" because there isn't much money involved. This can be a dangerous miscalculation.

Certainly a small job may involve a limited loss of payment if the contractor does poor work or fails to complete things. But in a number of ways, the risks you face in this situation are no less significant simply because a small amount of money is involved. In reality, the level of risk has little to do with the size of the job.

What if you home is damaged? What if a $100 plumbing repair turns into a $5,000 water damage disaster when a pipe breaks? Or if the worker doing a $500 roof repair falls and is disabled? Or if a $200 electrical repair causes a fire that destroys your home? You want to know that the contractor has business liability insurance, Workers' Compensation coverage, or disability insurance where Workers Compensation is not required by law.

And the only way you can be certain of this is by having a contract that spells it out.

Construction work involves risks. When someone works on your home, you need to be protected from these risks. Just because the job is simple or small doesn't mean something can't go wrong.