Category Archives: Construction

Residential Construction Insurance New Jersey

Builders Risk and New Jersey Residential Construction Insurance

In order to thrive in the construction business a contractor must first, win bids and second, deliver the goods. Doing a good job means bringing in more money but it also comes with risks and exposures associated with this line of work. For those whose primary source of income is in home building and restoring projects, residential construction insurance in New Jersey will provide some much needed relief when an issue arises.


Make no mistake; the first item on any contractors list will be insurance on the property while under construction. Typically, the coverage purchased by most professionals is Builder’s Risk Insurance, a specialized coverage designed specifically to apply to buildings while under construction, which includes materials and supplies pertaining to the construction. There are other possible options for coverage of items not covered under a builders risk policy.


Who buys this coverage?


Depending on the terms of the construction contract, this particular coverage may be purchased by either the contractor or the owner of the building. In either case, all parties to the project who may have property involved in the construction should be named in the policy. This usually includes the owner, the contractor, any subcontractors, any sub-subcontractors employed by the subcontractors, the financial institution supplying money for the project, and also any architects and engineers involved in the project.


What does builder’s risk cover?

A builders risk policy provides coverage for damage done to the insured structure from a number of possible events. Most policies will cover damage from fire or theft, as well as any of the following events; wind, lightning, hail, and explosions. Extensions of coverage may be provided for certain exposures not listed here.


For example, property in transit, that is, any resulting property loss while said property is being transported to the jobsite. Coverage can also be extended to apply to scaffolding, construction forms and any temporary structures, but only while they are at a location reported to the insurer. Any property in temporary storage that will be used or installed in the secured location and pertaining to the insured company can also be covered under an extension to existing coverage.


A contractor will need to purchase a separate policy to cover the property of others; tools or equipment, any liability issues or concerns, including accidents on the job site, and sub-contractors are, in most instances, required to have their own insurance. Speak to an agent about any questions or concerns pertaining to New Jersey residential construction insurance today.


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New York Construction Insurance and the Scaffold Law Controversy

According to most real estate developers and construction executives, an arcane New York state law has dramatically driven up the cost of construction insurance in New York. Apparently this law foists the liability for construction accidents solely on the builder, and they claim that it acts as a deterrent for worker safety.

Furthermore, opponents of the law now say they have proof of its ill effects on both the industry and the economy. A study conducted jointly by the Cornell University Department of Policy Analysis & Management and State University of New York (SUNY) Nelson A. Rockefeller Institute of Government, paid for by the nonprofit New York Civil Justice Institute, concluded that the law has resulted in more accidents and has cost the construction and real estate industries billions of dollars.

Study points out flaws in the law on New York construction costs

The study found that New York state has 667 more construction accidents per year on average because of the rule, and that it incurs as much as $3 billion a year in additional costs. This means that if you’re a contractor, you will likely benefit from the law’s repeal.

Proponents of the law, which includes Paul Fernandes, chief of staff of the Building and Construction Trades Council of Greater NY, believe that rescinding the law will only weaken responsibility for workplace safety and health. Fernandes said, “We’ll put this on the shelf next to the rest of the research in this decade-long campaign against scaffold safety that has later been proven to be completely false.”

This “Scaffold Law”, known as Labor Law 240, according to its opponents, mandates that a construction contractor or developer who holds a New York construction insurance policy for a job be solely responsible for any injuries suffered by workers on that project. But critics say the law is problematic, as it excludes workers from any responsibility for an accident they suffer, even when they are carrying out work improperly or with disregard to safety procedures, driving up the cost of construction insurance in New York.

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