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Homeowner and Contractors: Important Considerations

HOMEOWNERS:

Hiring an Unlicensed Contractor To Work In Your Home

What if I hire an unlicensed general contractor to perform work on my home? Will my homeowner’s insurance cover damage to my property? This depends on the terms of your specific policy. Always read the Declaration Page of your homeowner’s insurance policy so that you know exactly what is covered and what is not.

Damage TO a Neighbor’s Home or Adjoining Property During Renovations

Will my homeowner’s insurance cover damage to my neighbor’s home as a result of renovations on my property? This depends on the terms of your specific policy. Always read the Declaration Page of your homeowner’s insurance policy so that you know exactly what is covered and what is not. For example, it’s possible that simply moving out of your property during construction may make your homeowner's insurance less viable to cover damage during construction.

Damage FROM a Neighbor’s Home Renovation or Construction Project

Will my homeowner’s insurance cover damage to my property caused by construction work occurring on my neighbor’s property? This depends on the terms of your specific policy. Always read the Declaration Page of your homeowner’s insurance policy so you know exactly what is covered and what is not.

COMMERCIAL GENERAL LIABILITY INSURANCE / CONTRACTOR’S INSURANCE:

Damage Caused By Subcontractors

I am a general contractor. Does my Commercial General Liability insurance protect me from liability for damage caused by my subcontractor? It may not. Policies may include a subcontractor exclusion which would limit certain claims that result from work performed by a subcontractor. Check your policy details, and also require subcontractors to carry their own COI.

Damage to Adjoining Property From A Permitted Construction Site

Does Commercial General Liability insurance cover damage to an adjoining property? This depends on the policy. Some policies only provide coverage for bodily injury or property damage occurring on or in a designated premise or job site.

Damage to Adjoining Property or Bodily Injury With Builder’s Risk Coverage

I am a general contractor and I have Builder’s Risk insurance. Does that protect me from liability against claims of damage, damage to adjoining properties, or bodily injury to third parties? Builder’s Risk typically only provides protection to the buildings under construction and construction materials. Importantly, it will not provide protection for bodily injury.