Dwelling Under Construction—Liability Coverage

Our insured is a homeowner who is acting as his own general contractor in building his new home. Does he need to buy any additional liability coverage to cover his liability at the location of the new home?

Florida Subscriber

The insured does not need to buy the additional residence endorsement. The homeowners policies define an “insured location” as including any “land owned by or rented to an insured on which a one or two family dwelling is being built as a residence for an insured.”

Because the location of the new home is an insured location, your insured has section II coverage for injuries or damages arising out of the home's construction. The endeavor of building one's own home is a personal, not business, pursuit.

However, the homeowners policy provides no workers compensation coverage. If your insured is hiring subcontractors to do some of the work, he should get certificates of insurance from them indicating that they are carrying workers compensation coverage.

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