Insurance During Construction?
I will be doing some construction in the house. The contractors will have their own insurance, but how about me and the house? Should I notify the homeowners insurance? What should I tell them? I just want to be covered but also avoid unnecessary additional fees. Any experience you can share?
I will be doing some construction in the house. The contractors will have their own insurance, but how about me and the house? Should I notify the homeowners insurance? What should I tell them? I just want to be covered but also avoid unnecessary additional fees.
Any experience you can share?
Your homeowners policy may not have the option to add the builder’s risk. If not, I would get a builder’s risk policy. If they do, it is probably the cheapest option to just add that. It is an added expense, but it is worth it if there is ever a major claim. Things can happen that may not be the conttractor’s liability.
William Smoltino
Narrows Insurance Agency, Inc.
What my insurer told me is that without Builder’s Risk and OCP, my homeowner’s insurance policy would not cover me for any liability or loss related to the renovation (this is an extensive renovation that will last a year), and there was high possibility that any injury or loss that did occur would probably be attributed to the renovation. So I decided to get it, even though my contractor has insurance and worker’s comp and disability (all verified by me), and is naming me as additional insured. It may be overkill, I sincerely hope no one’s insurance has to be invoked, but I decided that I’d sleep better with it.
Just a bit more clarification, please: if I am doing a significant renovation, using a GC, am named on my GC’s insurance (which has liability, worker’s comp, umbrella, etc), have regular homeowner’s insurance (through Liberty Mutual, who I told I would be doing a significant renovation), is the consensus view here that I STILL should purchase an additional Builders Risk Policy? Thanks everyone.
Re: last two posts, that’s why, in addition to any coverage you purchase for yourself, you want to see true copies of your contractor’s Workers Comp insurance, and be named as additionally insured on your contractor’s insurance in a minimum amount of $1,000,000 per occurrence.
get extra coverage. The contractors employee can and will sue you too.(In fact there was a lawyers commercial about this today) The homeowner has a non delegable duty under NY law that makes YOU absolutely liable, negligent or not. Its a bitch but it is the law.
I had a client that paid an additional premium and everybody told him he was stupid that the contractor’s policy covered hom as well.
All was OK until one worker got injured and since he wasn’t on the contractor’s payroll he sued the contractor and the owner for a nice coupla’ dollars which his insurance picked up the cost of the defense ONLY because of that additional clause.
We just went through this. We told our insurer what was up and paid a small additional amount for coverage during construction – I forget the amount but a couple hundred or so. We also didn’t get some of the discounts that we eventually got (alarm, e.g.) for the time period during construction. Given that the likelihood of disaster is much higher during construction, paying a little extra seems worthwhile. Also, we didn’t have a course of construction policy – we were adding to the value of the property, but really just over a couple months – so we believed their argument that the added hassle wouldn’t be worthwhile.
If you’re substantially increasing the value of the home, you may also want to consider a “course of construction” policy that increases the value of the policy parallel with the value of the work as it is being performed.
I often refer my clients to Chuck Chernick: (212) 697-2147, and I always here great things from them after they’ve spoken with Chuck.
Jim Hill, RA, LEED AP
Urban Pioneering Architecture
On the contractor’s policy, you’ll want them to name you as additionally insured, minimum $1million per occurrence.