What could go wrong building a new construction home?

[Sophia Berry]

Hello all,

I am trying to find out what type of insurance or documents needed just in case something went wrong building homes as an investment project.   Just a little background, my brother and I purchased three lots in a subdivision and successfully built and sold one home.  My brother was not the easiest person to deal with therefore, I just sold him the other two lots and I went on to other projects.  In the first project we had a builder complete the home and I just paid him in draws to get the home done.  There was always something in the back of my mind that he may be charging me more for the work than what the actual cost were. 

Fast forward I found and purchased 5 other lots in a subdivision and have just started building the first house. This time, I am in a unique position because I am acting as the General Contractor/Builder.  I was referred to a guy who has built homes for many years for another company and he is willing to let me use his knowledge to build my homes and I will be just paying him to go out to the site and make sure the work is completed correctly. He is also in charge of ordering the inspections and moving the process along for me.  I don't pay any of the subs until he tells me the work was done correctly and completed. My job was pulling all the permits and hiring all subs to do the work and paying them directly.  Most of the subs he has worked with however, if I found a better price somewhere else I can do so. I believe I am in a better position because I am in complete control of how much I spend and cost. I am  also learning a lot about the process which is Great.  Things have been running smoothly so far.  I was speaking to some friends and he asked me what would I would do if one of the workers got hurt, or what if something is wrong with the house once complete.  I know I will most likely need Home Owners Insurance if there was a fire ect.  Just want to know everything I need to cover myself if something went wrong.