Long Beach, CA · Member since 2016 · 24 posts · 8 votes
Hello BP! I am in the process of getting my plans approved for an ADU in Los Angeles County. I am considering subbing out the project myself and pulling permits as owner builder. The property already has 2 units on it with a normal landlord rental policy.
Should I pull any additional insurance going this route such as workers comp or anything else? Anything else to consider pulling permits as owner builder?
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
5y
Austin,
First thing to do is find out the impact of the project on the existing insurance. Its possible the existing policy may be cancelled if you are doing construction there, it could be unaffected, or you may be able to endorse it for the new exposure.
Once you know how the current policy will handle it, then you will have a better idea of what is needed. Some things that will likely be needed:
1. A Builders Risk or Renovation Builders Risk policy to insure the new dwelling or the remodel
2. General Liability as a general contractor
3. Workers Comp (even if everthing is subcontracted it may be wise to get a policy. It depends on the State WC laws as to how at risk you are if a sub or sub's employee gets injured and there is no coverage). You may be required to have it to pull permits in some states.
Other things to consider:
1. Pollution Liability if the project involves removing a tank, clearing asbestos, remediating lead, etc.
2. Business Auto coverage (if you dont have any owned autos I would still look at Hired & Non-owned auto coverage)
You need to talk to an independent Agent who is familiar with Construction Risks and Contractors Insurance. Good luck with the project
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
5y
Austin, I have done many, many construction projects on properties I owned as owner builder prior to getting my GC license. In Los Angeles, the owner builder disclosure forms from LADBS specifically ask you to check off and acknowledge that any and ALL persons working for you on your project will have workers comp or that you will hire only licensed contractors who provide workers comp insurance.
If you sub it out yourself, you can pull owner builder but certain items like electrical panel upgrades will require a licensed electrical contractor to pull certain tasks like this.
The advice above to speak with your insurance broker/carrier on your plans moving forward is a good one and I concur. You should certainly take a trip down to LADBS office and ask for the owner builder permit app and forms. You can then read through and see what you will HAVE to agree to in writing and what your options are for owner builder situation on your ADU.