Insurance liability for major alteration (type 1)

Any recommendations for policies for renovating a major alteration type 1 when working with a contractor? My contractor is requiring that I pay $3500 for PGL insurance for my project? and suggests I get Builders risk insurance. Also, have any building owners pulled permits without a contractor for an major alteration type 1? IF so what is required and do you happen know to the approximate cost of same? Thank you in advance. I am leaning to go with my contractor but wanted to get all options on the table.

jakesprague

in General Discussion 8 years and 3 months ago

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espeon | 8 years and 3 months ago

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Either your GC doesn’t know what to do or you’re confused about what is required. You can’t pull a permit w/o a GL policy but that’s on the GC. That’s part of being licensed.
Getting Builder’s Risk on top of that is up to you unless your existing carrier requires it, which is quite possible.
For the GC, the cost of insurance is proportional to the labor cost and subcontractors of the project.

slopefarm | 8 years and 3 months ago

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I don’t recall our GC itemizing the cost of his liability coverage as part of the contract price. Your contract should specify the type of liability coverage that you GC carries.

As for you as homeowner, if you already have homeowner’s coverage, talk to your insurance broker or carrier about a rider to cover the construction risk. You can probably convert your policy temporarily during construction and convert back when done. You probably do not need to take out a stand alone builder’s risk.