Was chatting with my cousin yesterday—he's renovating his house, and apparently one of the builders accidentally knocked down part of a neighbor's fence. Yikes. Anyway, turns out builders have their own insurance specifically for this kinda stuff, which I guess makes sense but I'd never really thought about it before. It's called builder's liability insurance or something similar. Covers things like accidental damage, injuries on-site, and even theft of materials.
Got me thinking...how common are these claims? Like, do builders actually use this insurance often, or is it more of a "just in case" thing they rarely tap into? Also wondering if anyone knows whether smaller contractors usually carry this insurance too or if it's mostly bigger companies? Seems like it'd be risky not to have it, but you never know.
Curious if anyone else has heard interesting stories or facts about builder insurance or construction mishaps.
Builder Insurance—Ever Wondered Who Covers the Mishaps?
From my experience, smaller contractors usually do carry liability insurance too, not just the big guys. It's often a requirement for permits or contracts, especially if they're working on residential projects. Claims aren't super frequent, but they're definitely not rare either—accidents happen more than you'd think. Makes me wonder though...do homeowners typically verify this insurance beforehand, or just assume it's covered?
"Makes me wonder though...do homeowners typically verify this insurance beforehand, or just assume it's covered?"
You'd be surprised how many folks just assume it's all good without checking. I've had clients who didn't even think to ask until I brought it up. Honestly, it's always better to gently remind homeowners to double-check coverage upfront—saves everyone headaches later on. Plus, peace of mind is priceless when you're building someone's dream home...accidents might be rare-ish, but they're never fun to sort out after the fact.
Yeah, it's pretty common for people to just assume they're covered without actually checking the fine print. I've seen friends dive straight into renovations or even full builds without a second thought about insurance. Usually, it's not until something goes sideways—a busted pipe, a damaged roof—that they realize coverage isn't as straightforward as they assumed.
It's one of those details that slips through because, let's face it, insurance paperwork is boring and complicated. People naturally trust that their existing homeowner's policy or the builder's coverage has their back. But honestly, it's worth that awkward five-minute conversation beforehand just to clarify who's responsible if something does happen. I learned this the hard way helping my brother with his garage extension—we assumed his homeowner's insurance covered everything. It didn't. Thankfully nothing major happened, but it was a wake-up call.
Better safe than sorry for sure...but yeah, I'd bet most folks don't think twice until someone nudges them about it.
Yeah, it's pretty common for people to just assume they're covered without actually checking the fine print. I've seen friends dive straight into renovations or even full builds without a second th...
Definitely agree with the point about assumptions—it's surprising how often people overlook these details until something actually goes wrong. From my experience, most reputable contractors, even smaller ones, do carry liability insurance because it's often a requirement for permits or financing. But I've also seen cases where homeowners assumed coverage was in place, only to find out later it wasn't sufficient. Always worth double-checking beforehand, even if it feels tedious.
