Insurance Costs

We are doing a 1.2 million dollar update to our 8 family coop. Plumbing renovations, some demo work of existing masonry and kitchen and bathroom upgrades, some electrical and gas lines. We were recently told that the insurance for the project was going to be 150k for the projected 12 month project. I think that was a 5mil umbrella (honestly I don’t even know what that means).

Is this insane?

8104012

in General Discussion 3 years and 3 months ago

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adamkidron | 3 years and 3 months ago

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Your General Contractor should have General Liability and Umbrella which would cover your project. You need to be listed as Additional Insured in their policy. Have the contractor send you a Certificate of Insurance (COI) listing you as Additional Insured with your project address. You should also be the Certificate Holder. Once you get this COI send it to your home insurance broker so they can check the GC’s insurance coverage policies check out. You should not be paying $150K extra for insurance for this job. Is the GC charging you this? If you need help email me at adamkidron@hotmail.com – I had my brownstone gut renovated by All Renovation Construction (www.allrenovations.com) and their insurance broker assisted me with any questions I had which was much needed because as a home owner I was clueless. I am now better informed.

andriywww1990 | 3 years and 3 months ago

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you want an independent broker like resident2 recommends. independent brokers can talk about a lot of product from several companies. i have tried so many times to go to one company and have them carry everything but every time i get down to the fine details (coverage for business property stored in the car for instance) i cannot find one company that can do all of it. so i have an independent broker for the business and get my homeowners someplace else and auto yet someplace else. its a pain in the ass, but the places that sell only one product can not cover all the small details.

my broker on LI is Pinkham Agency. i normally would not go to LI for insurance and if it was me, i would try that forest hills guy first. I only got a broker on LI as the people who originally wrote the policies where resellers for Pinkham and they ended that relationship. they are that good (responsive in answering questions). this stuff can be done over the phone, but if i had a lot of questions like you probably have, that should be done in person.

resident2 | 3 years and 3 months ago

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Call Jacob Schraeter (An Independent Insurance Broker in Forest Hills) He has done a lot Commercial & Construction polices for me over the years. His number is listed.

stevecym | 3 years and 3 months ago

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An umbrella sits over all other insurance and is designed to cover things that your basic insurance does not.

If this is me and I had questions like this I would probably find out what kind of insurance product that is specifically (is it a construction policy, is it commercial, is it something designed for a residential property) and I would sit down with an agent who carries a broad range of commercial and residential product and let them explain why this is so expensive and see if their are alternatives. Too much stuff in insurance for lay people to understand and when I shop mine I had to get specific carriers for specific coverage.

If you are finding you need commercial insurance, I have an agent I use on LI. I think they are top shelf.

I am also thinking just now that maybe that policy has built in workers comp in case some contractor does not have some and an employee tries to go after you. Workers comp is pricey and will drive the cost. See if that is included.