Insurance

The different types of insurances that you might need for building a new home are: home owners’ policy or builders risk insurance, liability insurance, workers’ compensation, theft insurance and fire insurance.

All subcontractors must have insurance, but many times they do not have the proper insurance. You must have the Certificate of Insurance or proof of insurance on file before they start any work. As the builder, you should also have a blanket insurance policy.I have heard of two different problems resulting from improper insurance for a building project.

One was a home owner who hired a subcontractor roofer without Worker’s Compensation. When the roofer fell off the roof, the home owner had a problem.

The second was a friend of a builder who was building his own home on the side and he used a part time carpenter who fell into the stairwell. It cost the friend $30,000 in medical bills.

Make sure all subcontractors and anyone involved in the project has the proper insurance. Check with your insurance agent if you have any questions.         

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