Hello, A GC partner and I are working on a proforma to determine costs for a potential rehab project of a historic building and targeting 25 units in MA.
Can someone help me understand what kind of insurance we need to purchase, how much it will likely cost, and recommend potential insurance companies to work with for this type of project?
I'm assuming that you will be remodeling an existing building. If so, here are some of the policies you may need:
1. Property Insurance: Probably a "Builders Risk" policy. Need to find one that will cover what the call a Renovation Builders Risk. It will need to provide coverage for the existing structure and what is being added. If the project will not start immediately, you may need a Policy that will cover the vacant structure until work starts. You may need to make sure the coverage will meet any rebuilding requirements of the Historical designation. If you have to restore with only certain materials or methods, that may increase the amount of coverage you will need.
2. General Liability: Whether or not the property owner is also acting as Self GC will impact what types of Liability coverage will be needed. An Umbrella policy is a Liability policy that provides coverage above the General Liability policy if you need more coverage.
3. Workers Compensation: If you are the GC you will need to have a Workers Comp. policy. Even though you do not have any employees you could get drawn into a claim of an employee of an uninsured subcontractor.
4. Environmental: You may need Pollution coverage depending on the property and what is being done.
5. Auto Liability: Even if you do not own any autos, you should make sure there is coverage for Hired Autos & Non-owned Autos is included on the Liability coverage.
There's no way to accurately estimate the costs of the various policies without more info. In terms of companies, it is unlikely that one company will be able to do all the coverage correctly or affordably. You will probably need several carriers.
Feel free to PM me if you want more info on your specific project.