Modular Home Place Modular Home Place The Resource Guide to Buying, Designing, Building and Owning Modular Homes
Modular Home Place Logo
Bookmark and Share

Floor Plans I Pricing & Cost I Design I Construction I Builders I Financing I FAQs I Modular Articles

Modular Home Builders

 

INSURANCE CONSIDERATIONS WHEN HAVING A MODULAR HOME CONSTRUCTED

 

Tod L. Bergen, CPCU, CIC

 

If you are planning on having a modular home constructed on your lot, there are basically two paths that you can take. You can have a general contractor erect the home or you can act as your own general contractor. For definition purposes a general contractor is someone that will construct the entire home for you. This means that you do not normally need to hire each independent tradesman/contractor to perform the excavation, electrical, carpentry, etc.

 

There are insurance considerations to be considered whether you hire a general contractor or you act as your own general contractor. I will outline the items of concern and how they should be addressed:

 

1) CERTIFICATES OF INSURANCE:

You will need to request a certificate of insurance from either your general contractor or each contractor/tradesman that you have work on your home. Contractors are very familiar with certificates of insurance and if you request one, they should be able to comply with your request. If they cannot produce a certificate of insurance I strongly suggest that you hire another contractor.

 

The certificate of insurance should provide the following limits of insurance:

 

GENERAL LIABILITY: $1,000,000 Each occurrence / $2,000,000 Aggregate.

AUTO LIABILITY: $1,000,000 Combined single limit.

EMPLOYERS LIABILITY/WORKERS COMPENSATION:

 

$500,000 Bodily Injury Each Accident

$500,000 Disease Limit per Employee

$500,000 Disease Limit Aggregate

 

UMBRELLA LIABILITY: $1,000,000 Each Occurrence

 

Also, the certificate should have the following wording:

 

The certificate holder is named as an additional insured including completed operations on the General Liability and Auto Liability. Waiver of subrogation on Auto, General Liability, and Workers Compensation/Employers Liability. Coverage for work performed by subcontractors is covered either by endorsement or “Cvaerner Wording” None of the following endorsements apply: CG 2139, CG 2149, CG 2143, CG 2142 or any equivalent

 

2) HOLD HARMLESS AGREEMENT:

 

A hold harmless agreement is a contract between you and a contractor that states that the contractor will provide legal defense and pay for damages that are caused by the contractor and for which you are sued. It also should state that you will not be held liable for any injuries sustained by the contractor’s employees or the subcontractor’s employees. A hold harmless agreement is a second line of defense if the contractor’s insurance is inadequate to protect your interests. I strongly suggest that you have an attorney or a competent insurance broker provide a hold harmless agreement for you.

 

 

3) BUILDERS RISK:

 

A builders risk policy is use to cover the home against physical damage while it is under construction. In addition to covering the building while under construction, a builders risk policy provides coverage for building materials while in transit to the building site, as well as materials present at the building site prior to being added to the building itself. The contractor normally provides this coverage. However, I would confirm in writing that the contractor is providing this coverage.

 

Once the building is completed you need to attain a regular homeowner’s policy. The normal builders risk coverage expires once the building is completed and put to its intended use.

 

The information provided is for general information only. It is not intended to take the place of competent legal counsel. Each situation may provide unique circumstances. Please refer to your insurance broker and/or legal counsel.

 

Copyright Tod L. Bergen, CPCU, CIC

modular-ranch-home

modular-cape-cod

modular-two-story

modular-multi-family

modern-modular

custom-modular-homes

Modular Ranch

Floor Plans

Modular Cape Cod

Floor Plans

Modular Two Story

Floor Plans

Modular Multi Family

Floor Plans

Modern Modular

Floor Plans

Custom Modular

Floor Plans

Modular Homes - Factories, Manufactures and Floor Plans by State

Floor Plans I Pricing & Cost I Design I Construction I Builders I Financing I FAQs I Modular Articles

Privacy Statement

Alabama Modular Homes

Hawaii Modular Homes

Michigan Modular Homes

New York Modular Homes

Tennessee Modular Homes

Alaska Modular Homes

Illinois Modular Homes

Minnesota Modular Homes

North Carolina Modular Homes

Texas Modular Homes

Arizona Modular Homes

Indiana Modular Homes

Mississippi Modular Homes

North Dakota Modular Homes

Utah Modular Homes

Arkansas Modular Homes

Iowa Modular Homes

Missouri Modular Homes

Ohio Modular Homes

Vermont Modular Homes

California Modular Homes

Kansas Modular Homes

Montana Modular Homes

Oklahoma Modular Homes

Virginia Modular Homes

Colorado Modular Homes

Kentucky Modular Homes

Nebraska Modular Homes

Oregon Modular Homes

Washington Modular Homes

Connecticut Modular Homes

Louisiana Modular Homes

Nevada Modular Homes

Pennsylvania Modular Homes

West Virginia Modular Homes

Delaware Modular Homes

Maine Modular Homes

New Hampshire Modular Homes

Rhode Island Modular Homes

Wisconsin Modular Homes

Florida Modular Homes

Maryland Modular Homes

New Jersey Modular Homes

South Carolina Modular Homes

Idaho Modular Homes

Georgia Modular Homes

Massachusetts Modular Homes

New Mexico Modular Homes

South Dakota Modular Homes

Wyoming Modular homes

Modular Home Floor Plans

Modular Home Options

Modular Home Prices

Architects & Designers

Modular Construction

Builders or Dealers

Modular Home Lots

Modular Home Loans

Prefab Home Pictures

Modular Home Factories

FAQs and Articles

Modular Home Set

About MHP

Modular Home Costs

MHP-Home

Commercial Modular

STOP BUGGING ME! Safely Skills and Prevents Bed Bugs