Carl, I'm going to build my own house near Jacksonville, NC, and I'm confused about insurance requirements. I know that the contractors I hire should have workers comp and general liability, but what should I have in addition to theirs?
One agent says only Builders Risk (BR) insurance and tells me it covers damage to the property and also includes up to $1 million of personal liability for third parties that may get injured on the property.
Another agent says BR only covers the property, not liability, and that I should get a General Liability Policy.
Yet another says I should try to extend my current homer owners policy (different residence) to cover a 2nd residence.
And, they all require 2 yrs experience in residential home building. Why? What difference should that make to an insurance company? They are only insuring the home up to its' value at the time of a claim.
Can you identify any companies that are less stringent.
Can you offer any advice and/or contacts?
Hi Roger, the first agent has it right. To see why, read Construction Insurance-Builders Risk Insurance-Hazard Insurance-Homeowners Insurance
As for the required 2 years of experience, who knows? It makes no sense to me other than some insurance companies have more stringent underwriting policies than others.
I suggest using an insurance broker. Brokers have access to, and do business with, many insurance companies, whereas agents are usually limited to the policies of their insurance company.
It is the same way with mortgage loans in the mortgage industry. Brokers have access to, and do business with, many mortgage lenders, whereas loan officers in banks are limited to the policies of their bank.
Brokers can usually find what you need, or they don't get paid.