There are three major types of Insurance that need to be provided when building a new house and the following is a brief description of each.
The first is General Liability Insurance with the Contractor and Subcontractors providing proof of their insurance coverage. The amount of coverage required for your Building Project needs to be determined prior to any Contracts signed and at no cost to the homeowner. The Homeowner should be indemnified and held harmless from all claims in all of the policies.
The second insurance the Contractor and Subcontractors need to provide and keep in force is Workers Compensation Insurance. This insurance is required by the state and protects workers that may be injured while working on your home. If they are exempt from Workers Compensation Insurance then they need to provide verification of such exemption.
The third insurance that needs to be provided is Builders Risk Insurance. This policy provides coverage for the full cost of replacement of the project at the time of loss. The value of the Builders Rick Insurance should be equal to the total cost of the house less your personal property. With new construction this insurance is usually provided by the Contractor.
Let Prairie States Inc help you understand the Insurance coverage required and the limits necessary for the project. Prairie States Inc will work with your Banker and Insurance Agent to determine your exposure and require that the insurance coverage cover your risk. Prairie States Inc also provides an Insurance Log and Verification of Coverage during the construction of your new house. Contact us at prairiestates@sio.midco.net to discuss the Professional Services provided by Prairie States Inc.
