Important Insurance Matters Regarding Vacant Properties, Condominiums & Worker’s Compensation
It is imperative that you be aware properties that are vacant for 30 consecutive days or more do not have coverage for vandalism, theft or malicious mischief–which is standard throughout the insurance industry. Vacant is defined as an unoccupied premise, such as a complete renovation after the close of escrow. A “Builders Risk” policy can provide coverage specifically during this interim.
One of the major problems with insuring condominiums is that owners often fail to realize that sometimes the interior walls (known as HO-6) are not covered in the master condominium policy. If they do not have the proper coverage and experience a major loss, it will put owners in jeopardy.
Every homeowners policy provides workers compensation, in the form of in-servant and out-servant, but is very limited. In-servant can be defined as anyone employed by you working inside the home, for example, housekeeper, babysitter, nannies and out-servant is anyone working outside of the home, for example gardeners. Unfortunately there is no coverage for contractors, painters, roofers, etc. Coverage is provided up to 20 hours a week, anything in excess of that would require a worker’s compensation endorsement. Without the proper coverage, you would be responsible for all injuries and claims of the employee.