Please give me your opinions:
Does a remodeler contractor really need Existing Structure Coverage in Builder Risk policy? Will his GL cover for the existing structure if something happens?
Thank you
BUILDER RISK
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Insismypassion
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Re: BUILDER RISK
See exclusion j.5. in the CGL. Real property Care, Custody, Control exclusion. Questions may surround the word "particular." The GL does not provide coverage equivalent to the builders risk.
If it's an existing structure, there should be a property policy already in effect that would cover the damage to the house. If the contractor is buying to refurbish and sell; then yes, there needs to be property coverage in effect because the GL specifically excludes property of the insured.
The CGL only covers bodily injury or property damage arising out of the insure's negligence. What if it burns down from a lightning strike or something happens for which the insured was not a part of nor negligent?
Now, if the insured is refurbishing my house and causes a fire, the CGL will cover the damage to the part of the house on which he was NOT working because there is property damage arising out of his negligence. But other than negligence, there is no coverage.
If it's an existing structure, there should be a property policy already in effect that would cover the damage to the house. If the contractor is buying to refurbish and sell; then yes, there needs to be property coverage in effect because the GL specifically excludes property of the insured.
The CGL only covers bodily injury or property damage arising out of the insure's negligence. What if it burns down from a lightning strike or something happens for which the insured was not a part of nor negligent?
Now, if the insured is refurbishing my house and causes a fire, the CGL will cover the damage to the part of the house on which he was NOT working because there is property damage arising out of his negligence. But other than negligence, there is no coverage.