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Updated over 13 years ago,

User Stats

28
Posts
7
Votes
Ashley C.
  • Real Estate Investor
  • Richmond, VA
7
Votes |
28
Posts

ins coverage for vacant rehab w/ contractors

Ashley C.
  • Real Estate Investor
  • Richmond, VA
Posted

First, thanks for the wealth of information on this site, especially folks who've taken the time to ferret out and post related links in their posts. After scouring the forums, I've come up with a list of the insurance coverage I think I need for a vacant rehab shopped out to contractors. Would ya'll take a look and let me know where I'm off base? Got a few questions, too. :D Thanks in advance for your help!

1. Liability insurance to cover claims or lawsuits resulting from bodily injury/property damage to others caused by an accident on my property

2. Vacant building coverage (replacement cost) to cover damage to building, replacement of property, rehab costs, debris removal, theft of newly installed fixtures/appliances

3. Get added as additional insured on my GC/Subs policies

4. Hire GC/subs with liability, work comp, commercial auto policies; should include coverage for "projects and completed operations" to cover my cost to bring the property to completion if faulty workmanship, defective materials, carelessness, or accident occurs; covers defects after property is sold; should also cover theft of materials/tools so I'm not out the cost of a stolen pile of 2 x 4s (they buy everything).

Questions:
Is "Hazard" insurance for fire, wind damage, vandalism, etc. covered in vacant building coverage?

Am I liable for criminal acts committed on my vacant property (dog fighting, prostitution, drug deals, parties where someone's injured, etc.?)

To which contractors policy(s) do I get added as additional insured?

Can a contractor's injured employee, covered by w/c, also come after my liability insurance?

Are there any clauses you've found especially helpful or to be avoided at all costs?

Is the contractors coverage taking the place of what would be builders risk if I were doing it DIY?

Anything else to consider when there's a private lender mortgage in place?

Does it matter if my contractors are bonded?

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