Nov 25, 2014

Home elevation contractor insurance requirements released

The Department of Consumer Affairs has posted a regulation for public comment dealing with, among other things, the insurance requirements for home elevation contractors. This regulation is in response to the passage of S-942 (now C.56:8-138.2), a bill that requires all home elevation contractors to carry a minimum level of insurance coverage and to register with the state and certify that they have the requisite amount of experience in the elevation of homes, back in August.

Under the law:

• All HECs are required to carry a commercial general liability insurance policy in the amount of $500,000 per occurrence as well as additional insurance in the form of cargo or other insurance that specially covers home elevation activities, in a minimum amount of $1 million per occurrence to cover damages or other losses to the homeowner resulting from the home elevation.
• The Department of Consumer Affairs, in consultation with the Department of Banking and Insurance is authorized to require HECs to secure and maintain additional insurance.

Under the proposed regulation, HECs would be required to carry:

• $1 million per occurrence of general commercial liability insurance (including the $500,000 in general commercial liability insurance already required of all contractors and $500,000 of additional general commercial liability), with an aggregate limit of $2 million;
• cargo or similar insurance protecting the homeowners, lessors, or tenants personal property in the minimum amount of $50,000 per occurrence, with a minimum aggregate amount of $200,000; riggers, care, custody or control, or similar insurance protecting the dwelling and other structures being elevated in the minimum amount of $500,000 per occurrence, with a minimum aggregate in the amount of $2 million;
• insurance protecting the homeowner, lessor, or tenant from losses not caused through any fault of the contractor in the minimum amount of $500,000 per occurrence, with a minimum aggregate amount of $2 million;
• commercial auto liability insurance having a minimum amount of $1 million per occurrence; and
• any additional insurance required by law, including, but not limited to, workers compensation insurance.

The regulation will be open for public comment until Jan. 2, 2015, which can be made here. PIANJ will be submitting comments.