Depending on how you finance a homeowners policy might and probably will be required. This will probably included a liability rider with the policy. Be sure to get a copy of liability and workers comp insurance from the contractor. He will be able to have his insurance agent make a certificate out to you. That way you have a record that his insurance is in effect and you are covered. Be careful of fly by nighters that will copy a certificate as proof.
I was a contractor for many years and always furnished these certificates to my customers. Only once had a problem, and I was glad that I had gotten the certificate for homeowner because the company would not have paid with out it. (Saved me a lawsuit.)
My insurance broker says that I’ll need liability insurance for renovations that were done while I was the owner of the property. Of course I’ll be named as additional insured on my contractor’s policy, as well.
Do you experienced ‘rehabbers’ agree? My agent is a close friend and golfing buddy; I’m inclined to believe he has my best interest at heart.
Comments from those with actual experience regarding this issue are encouraged.
Tom
It has been a long day but I read your post 3 times.
You refer in the past tense if the renovations are finished and you no longer own the property You can’t purchase insurance for the past.
Sorry if I am reading you wrong but that is how it sounded when I read it. A lialibility policy is inexpensive and would protect you from lawsuits during construction and beyond. Your contractor should have liability and workers comp so the risk would be slight, if you have a homeowners policy you should be ok
John,
You are right. My intention seemed perfectly clear to me, but upon rereading it, I see how confusing it is.
Everything should be in the future tense.
When I purchase a property to renovate and resell for a profit, my insurance agent advises that I will need liability coverage for the work done by my contractor, for the period of time that I own the property.
If, at some time in the future, something happens to the property that is deemed to be a resultant of the renovation work that was performed while I owned the property, I could be held liable.
It sounds like you agree that a liability policy will protect me for future occurances.