I'm working on another a New Construction SFR project. In past projects, we have hired a GC but given my husband's commercial construction & engineering background, this time we will General ourself.
On this next project, we will be the landowner, investor, developer, and GC (yes wearing many hats).
My question is regarding the level of insurance required:
1) For the GC license, the state (of Washington) requires General liability insurance and bonding. (~annual $3,000)
2) For the land homeownership, we will carry a homeowners insurance policy. (~annual $2,000)
3) For the specific project, we will carry a Builders Risk Insurance policy. (~annual $950)
Seems like a lot of insurance but I also want to make sure we’re covered.
Does this seem like overkill or just right? Am I missing anything?
What is #2 covering that # 1 and #3 are not?
Isn't (2) for post construction i.e. after home completion?
I’ve heard mixed responses... but what if someone slips on the land...?
The builders risk is structure only. The General Liability is for GC, then as owner .... there is also Liability.
The insurance companies haven’t given me straight answers... and instead have tried to sell me even more policies.
@Jessica S. there are many "what if's" and ways to structure this, so comments are as follows,
Day 1 of construction through completion/occupancy permit.
A. You should have a General Liability (GL) policy with the coverage form "Products & Completed Operations", which is not present in a standard Homeowners policy. This form responds to the future homeowners claims such as the windows were installed wrong and now the interior of the wall is damaged.
This GL policy will also provide coverage for slip and fall claims from others on the property
B. Builders Risk policy - provides coverage against damage claims to the building until the building is complete.
Project is compete -
A. If you will occupy the property as your primary residence, you need a homeowners policy
B. If you will be looking to sell the property as a spec house, you would need a Vacant Building policy until the home is sold
C. If you will be renting the property, you would need a Rental Dwelling/Landlord policy
Additional Risk Controls you should consider;
*Subcontractor agreement detailing the specific insurance requirements your subs need to carry.
*Work comp policy
Good luck on the project!
thank you Jason for the very comprehensive response!
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