Bricks, Masonry, Asphalt and Concrete - How To Add Insurance for DIY Remodel?

What type of insurance do we need if we decide to be our own contractors for a major home remodel? The roof will come off in our remodel and we have to move out for awhile. Our home owners policy doesn't seem to cover the special requirements of major remodeling.

Some of the work will be done by handymen and day workers . . . want to be sure that we are covered but hard to figure out where to get a policy.

The answer definitely has to do with what state you live in. My gut feeling is that in most states, if you are acting as GC, hiring outside labor, you most likely will have to form a business entity with all the required insurance and tax requirements of a GC. You may need to contact your state insurance commission for a proper answer.

Good luck! :thumbup:

I am in Georgia. A relative in Florida who wanted to get builder's insurance was not approved because she was not a licensed contractor.

If we form a company and someone get's hurt on the job, seems like we could still have claims against the house or us personally.

Also, not occupying the house during construction may put the coverage at risk if the house burns down.

I don't have a solid answer and most likely no one here does. My free advice is to get firm answers - preferably in writing - from your jurisdiction. It would be a shame for you to go with someone's opinion to only lose your house to a liability claim.

Here in NJ, you're right, you would need to have a business and be a licensed GC (not hard to do) to hire contractors and cover their insurance. The line is crossed when someone other than the homeowner does any work, even if the homeowner takes out the permit.

Good luck! :thumbup:

Betty: In order to accomplish what you want as a general contractor, you'd better do it before June 30, as we all have to be licensed after that date. We are in the application process for exam exemption now. I would check with John Oxendine's office to see exactly what needs to be done in order to cover yourself in the event of an accident. Also, make sure all your sub contractors have their own workers compensation insurance and liability insurance. That way you will be underwriting their insurance. Good luck with the project.

This may help others.

Did some research on the web. Seems like being an official GC isn't the answer because then we need to carry workers' comp which can be pricey.

It appears that we need to extend the liablity of our homeowners for the workers we use and check our subcontractors' insurance. However, we will be out of the home more than 30 days which could be a problem with our homeowners:

http://realtytimes.com/rtcpages/20011105_remodel.htm

http://insurance.com/Article.aspx/Thinking_About_Remodeling/artid/184

http://www.bankrate.com/brm/news/home-improvement/covered1.asp

Here are some quotes that seemed important:

<<When hiring a general contractor, find out if the contractor has workers compensation and ask to see a copy of the policy. Workers compensation pays for medical and rehabilitation expenses and covers lost wages if the workers sustain injuries on the job. Injured workers may sue you if the contractor does not have proper insurance.

In most home improvement projects, the contractor subcontracts the builders, electricians and plumbers. The workers hired may not be full-time employees of the contractor and therefore not covered under the contractor's workers compensation policy. While some independent builders, electricians and plumbers may carry their own workers compensation coverage, others may not.

You should verify the insurance coverage of the contractor and the subcontractors. If the coverage is insufficient, you may need to fill in the gaps by extending the limits of the liability portion of your homeowners policy.>>

<< If you plan on leaving your home during the remodeling, check with your agent about terms of your policy. Vacancy clauses vary from company to company. In some cases, you may not be covered under your homeowners policy if you are gone for more than 30 days.>>