What type of insurance do I need?

Question

Hello BP members,

I will be hiring a GC to do a gut job on a row house in DC and was wondering what type of insurance I need on the house. My understanding is that the GC provides liability and worker's comp. Do I need builder's insurance? Please guide me in the right direction.

Thank you,

Shawn

Steve Babiak · Answer

Builders risk and vacant property policies will normally cost two to three times what you would pay for an occupied house.

So that number is probably in the ballpark. The nice thing about using that company is that you pay by the month rather than say by the quarter; consider that companies offering this type of coverage typically consider the entire premium earned even if you cancel before the end of the term (i.e. no refunds when you cancel early).

Steve Babiak · Answer

If you are unable to locate a suitable company, check the company in @Tim Norris ' profile.

Eric Belgau · Answer

You need a builder's risk policy.  Little trick...  Ask your GC who his broker is and call them for the builder's risk policy.

Shawn Oh · Answer

So I'm about to sign the contract with a GC and came across another question. The contract GC has provided says:

"11. INSURANCE. Before work begins under this Contract, (GC) shall furnish certificates of insurance substantiating that (GC) has placed in force valid insurance covering its full liability under the Workers' Compensation laws of the DISTRICT OF COLUMBIA and shall furnish and maintain general liability insurance, and builder's risk insurance for injury to or death of a person or persons, and for personal injury or death suffered in any construction related accident and property damage incurred in rendering the Services."

Do I still need builder's risk insurance? Is there a difference between the one by the contractor and by the owner of the property?

Shawn Oh · Answer

Thank you for the suggestions @Justin Pierce @Steve Babiak I'll give those guys a call.

Justin Pierce · Answer

$400 per month for a builders risk on a $400k property still seems a bit high.  Try the Clifton Agency out of Clifton or Construction insurance out of Manassas.  I don't have their phone numbers handy but you can just look them up.  I can pull them up if you can't find them.

Shawn Oh · Answer

@Steve Babiak yup, that's the quote from them!

Shawn Oh · Answer

Thanks the info, @Jeff Bridges

What would say is an acceptable range for monthly cost on a 400k row house?

Jeff Bridges · Answer

All I can say is that you are gutting a house where risks for fire, collapse, plumbing leak or other issues associated with construction are high. You won't get prices competitive with homeowners policies because they reflect much lower risk holders in finished homes. but you should still get several quotes to find the best rate.

DC independent insurance broker will check various companies for you for the best rate:

http://www.cbcinsurance.net/business-insurance/bui...

I have not used them however since I havent yet needed this for DC....

Shawn Oh · Answer

@Jeff Bridges

Would you have any suggestion for builder's policy brokers in the area? One quote I got was $400/month on a $400k property which seems very steep to me.

What type of insurance do I need?

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