Insurance Confusion
I am about to close on a brownstone in Harlem that will need a some serious TLC before we can move in. Everything is almost in place except for the insurance. I called an insurance company in search of Builders Insurance and received a quote but the sales person has also advised we get Liability…
I am about to close on a brownstone in Harlem that will need a some serious TLC before we can move in. Everything is almost in place except for the insurance. I called an insurance company in search of Builders Insurance and received a quote but the sales person has also advised we get Liability insurance. Do I need both liaility and Builders insurance? doesn’t my contractor’s liability insurance us in case of any of the workers having an issue?
Help.
Most of the polices offered for homes during construction (aka Builder’s Risk Policies) include both property and liability. Was the agent advising that you get excess liability (an umbrella)? Many regular homeowners policies do not offer the additional coverage for construction, but some do.
If you need advice on this, feel free to call me.
William Smoltino
Narrows Insurance Agency, Inc.
718-745-1500
lola — you can get a homeowner’s policy that inflates to a builder’s risk while the work is being done. You only pay the increased amount for the period the work is going on. Not cheap but you don’t have to go shopping yourself every time you want to change the policy. Your bank will probably require a certificate of insurance to close, but you probably don’t need the builder’s risk component until the contractor starts.
We did this through Fireman’s Fund a few years ago. Call Dorothy Cohen at HUB. 212-338-2100.
At what level of construction is this type of insurance required? How about if your putting in new mechanicals but not moving walls? Seems like yet another cost I have not accounted for!
Okay, I JUST went through this. If you’re doing construction, your regular house insurance is essentially suspended. The Builder’s Risk policy plus the Owners and Contractors Policy take its place. The liability part (OCP) ran me around $2,000. The Builder’s Risk was around $6,000. This will depend on how much you insure for — the existing replacement value plus the est. cost of the renovation.
If you’re not starting renovation for, say, six months, get regular house insurance, and when you’re ready to go, get the BR plus OCP. You’ll get a rebate on the regular insurance, which will kick in as soon as the reno is finished (and be way way cheaper).
Does this help?