What To Know Before You Raise A 350,000-Pound Home 10 Feet In The Air

Insurance Requirements For Home-Elevation Contractors
What are the insurance requirements for a contractor performing general home renovations in New Jersey?
Every registered home-renovation contractor must maintain commercial general liability insurance with a minimum amount of $500,000 per occurrence. Don’t forget there are other insurance policies required by law, such as workers’ compensation and commercial auto liability. [N.J. Rev. Stat. Section 56:8-142(2013)]

I heard that the insurance requirements are different for home-elevation contractors? Is this correct?
In addition to the commercial general liability minimum of $500,000 per occurrence (noted above), home-elevation contractors must maintain:

  1. cargo insurance, or other policies insuring the homeowner’s, lessor’s or tenant’s personal property located in the dwelling and other structures being lifted with minimum coverage in the amount of $50,000 per occurrence and a minimum aggregate of $200,000;
  2. riggers or care, custody or control insurance, or other policies insuring the dwelling and other structures being lifted, with minimum coverage in the amount of $500,000 per occurrence and a minimum aggregate amount of $2 million;
  3. policies insuring the dwelling and other structures being lifted, and the homeowner’s, lessor’s or tenant’s personal property located in them, for damage unrelated to the legal liability of the contractor, with minimum coverage in the amount of $500,000 per occurrence and a minimum aggregate in the amount of $2 million;
  4. commercial general liability insurance, having a minimum coverage amount of $1 million per occurrence, with an aggregate limit of $2 million; and
  5. commercial auto liability insurance having a minimum coverage amount of $1 million per occurrence.

When did the requirements for home-elevation contractors go into effect?
The law took effect on Oct. 1, 2014, and applies to all persons or businesses that solicit or perform home-elevation work (defined as raising an entire residential or noncommercial structure to a higher level above the ground). Contractors must show proof of such insurance in order to qualify for registration with the New Jersey Division of Consumer Affairs as required by law.

Posted in Insurance.

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