Short Term Construction Policy...???

[Mike Siegal]

Hi friends,

Is there a policy that covers home-owners against any accidents that take place when CONSTRUCTION takes place on your homestead?

I was considering this as I am getting my Roof Changed by a Licensed Roofer. I don't know if the Roofers coverage is good or not (but according to law---its supposed to be----but i don't trust roofers).

• Is there a add on policy that is available to home-owners when construction work is being done on their house?
• If so, what is it called?
• Would my home owners policy cover this type of work?

Thanks for any input you can give...



.

 

[insurance1822]

Best thing you can do is request he provides a certificate of insurance for GL & workers comp if he has employees. I'm not aware of any short term construction insurance project per say.

I saw a claim come through once where the roofer stacked the shingles in the wrong area of the roof that caused structural issues to the roof that the insured's policy didn't cover & it became a nightmare.

If it were me, I would just get the certs & get the work done.

 

[Mike Siegal]

Best thing you can do is request he provides a certificate of insurance for GL & workers comp if he has employees. I'm not aware of any short term construction insurance project per say.

I saw a claim come through once where the roofer stacked the shingles in the wrong area of the roof that caused structural issues to the roof that the insured's policy didn't cover & it became a nightmare.

If it were me, I would just get the certs & get the work done.

Wow...thanks for that info 1822.

 

[ARus]

Hi friends,

Is there a policy that covers home-owners against any accidents that take place when CONSTRUCTION takes place on your homestead?

I was considering this as I am getting my Roof Changed by a Licensed Roofer. I don't know if the Roofers coverage is good or not (but according to law---its supposed to be----but i don't trust roofers).

• Is there a add on policy that is available to home-owners when construction work is being done on their house?
• If so, what is it called?
• Would my home owners policy cover this type of work?

Thanks for any input you can give...



.

You should request a certificate of insurance where you are written as additional insured,ask to see the roofing license and obtained village bond. The certificates doesn't show if he is roofer or not,(if name of the company doesn't show itself) so look at all details. The certificate has a place for this explanation, and the explanation should be there. You also should have a contract for this particular project.

As additional protection, you can obtain a builders risk policy (3,6,12 months). In this policy all parties are structured and is clear who is who and all existing coverage is listed.

Hope, this helps.

 

[Gulfman]

You should request a certificate of insurance where you are written as additional insured,ask to see the roofing license and obtained village bond. The certificates doesn't show if he is roofer or not,(if name of the company doesn't show itself) so look at all details. The certificate has a place for this explanation, and the explanation should be there. You also should have a contract for this particular project.

As additional protection, you can obtain a builders risk policy (3,6,12 months). In this policy all parties are structured and is clear who is who and all existing coverage is listed.

Hope, this helps.

Good advice....BUT doesn't the builders risk only protect against a non-owner occupied property...

???

 

[ARus]

Good advice....BUT doesn't the builders risk only protect against a non-owner occupied property...

???

No. It is fully applicable in this case. The person, who hires is the one interested the most from this coverage. I am talking from personal experience.

 

[DEInsuranceguy]

Normally in the contract with the roofer, the homeowner would want to see a hold harmless agreement in place. Also request a certificate of liability and workers compensation to make sure your homeowners has a way to subrogate in the event of a claim.

 

[Gulfman]

No. It is fully applicable in this case. The person, who hires is the one interested the most from this coverage. I am talking from personal experience.

Having trouble following you. What exactly did you buy where you (the owner occupied home owner) were protected against claims arising against the contractor by one of his employees? ( let's say one if his guys fell from the roof on your job)?

Plaintiffs lawyer would name the defendants as 1. the contractor...and 2. you in a lawsuit.

How would your policy protect you?

Im pretty sure builders risk is for non owner occupied (according to agents i spoke with here).

 

[Mike Siegal]

No. It is fully applicable in this case. The person, who hires is the one interested the most from this coverage. I am talking from personal experience.

What happened to ARus.? He had an answer but was called on it, and disappeared. I sure would like to know if he's found something?

 

[ARus]

Hi Siegal,

I recieved your e mail and found the post via my posts history.
It wasn't clear what coverage you actually was talking about, so I presumed Builders Risk coverage-policy. It is inland marine type of policy and covers the materials and the work at its ongoing stages. Talking Material stuff.

If you want to be protected from any liability erasing from your roof repair, the most important is to check if your contractor is insured with General Liability and Workers Compensation. Check if his policies are active and in good standing by calling his agent and/or checking online with your state directory. If he has history with WC policies, it means he probably is a good professional. Your responsibility goes as far, as to be sure that you are dealing with established(company is registered for more than 5 years), licensed(company is licensed), insured (insured) and bonded(local license bond) contractor.

Even there is a litigation, you will be able to prove, that you did what you should do.

You can check your home insurance to see how they treat all ongoing work in and on and out your house. It should be in Exclusions if they exclude themselves from any such involvement.

If you want to be in 100% sure, that you have your own protection, your own specific policy for this case, I will suggest obtaining Contract Litigation Insurance. It will be built up on your contract for roof repair. If something goes wrong, and the subrogation follows and reaches you, the insurer will go to court and defend you. The coverage could be selected appropriately for your particular case.

About owner and non owner occupied builders risk: as I know, nothing here is connected to owner or non owner. The subject is the risk of losing materials and what was created during the construction, before it is finished, or has certificate of occupancy and is occupied, or placed for sale, or for rent. Not sure if a sale can take place with this kind of policy from seller site. I have such case now, and should ask my client.
Examples:

1. My client is building a large, new home. His bank asked me for proposal for Builders Risk. His contractor supplys General Liability, Workers Compensation, Umbrella and Commercial auto. I sold a builders risk policy to the owner.

2. Flipper is preparing a small house for sale. He should buy General Liability and Builders Risk instead of General Liability and Vacant Property. Under builders risk he has broader coverage for all repairing costs and final product.

Why you should NOT be in case 2.???
Because if you are in a role of a general contractor, you easily become a target for any employee claim happened to your subcontractors (in your case-the roofing contractor). The subrogation close (means the claim is following everybody who might be responsible-simplified) will reach you with full force.

So, you see how in insurance is very important to define the right role first, and build protection around this role.
Hope, it helps. English still challenging me, sorry.