Real Estate Investor Articles

This is exactly right. When i give an estimate i always write in my insurance agents name and number so the prospect can call and verify as they should.

All any cust has to do is ask for a certificate of Insurance from the contractor this will be mailed from the insurance agent or faxed with the property owners name and the amounts of Insurance carried by the contractor
Calling the insurance co means nothing (you must have this certificate to be sure the contractor has Insurance0
we always have a certificate sent to every cust on every job no matter what the size
as far as I am concerned if your Contractor dose not offer this to you BEWARE

To have a license in New Jersey you have to have insurance.I like the first comment i will start doing the same.

I just get my insurance company to issue "riders" in those the client gets a letter from the insurance conmpany telling them that the property is covered for my kind of work.
All contractor customers should ask for a rider, it costs nothing, and to me justifies my agents fees.

My insurance company will issue 'certs'(insurance certificates) immediately after I call them with the clients fax # or mailing address. I carry a $1,000,000 liability policy with a $1,000,000 'umbrella'.

I typically have my customers listed on my policy during the course of the job as a "2nd insured". This doesnt carry any additional fees, but provides the customer with added piece of mind. It also provides proof of insurance as the customer will recieve a copy of the policy in the mail.

I do like the ideas that I have read. I carry 1,000,000 also and will also start listing the customer as 2nd insured as added security.

Thanks,
Steven

It has been my practice to call and have a certificate faxed or mailed to potential customer, this removes all doubt and lets the customer know the limatations of my insurance. I see no need to carry a copy around with me.

In Topeka KS in order to get our permit you must have insurance the policy number and phone number are printed on the permit. I also have my agent fax or e-mail proof to the customer with the name of the job on the proof

Just started a renovation company,
How much what kind of insurance do I need ?
Thanks

As a painter, i do not need a permit/or lic's. And as far insurance goes, i don't carry it.I work by word of other customer's, and i give ref's as well. I only get insurance if they really request it and only for that one job to make the customer happy. Other than that i just give a bid an if i get the job then i start. This has worked for me in the last 10yrs or so, and if i move to another state. Then i'll get some insurance and lic's because thats required.

One of the best ways for proof of insurance is to have the contractors insurance company provide the investor with a certificate of insurance.

With regards to your presentation James, the information is accurate people should be informed of the necessities of insurance and the means of verifying it. My concern is the inclusion of the fear aspect to your advice. our industry has a long standing stigma of dishonesty and poor workmanship, this we all know. And personally I work very hard at addressing this in my contributions to the industry. When I address the issue of insurance I personally take the proactive approach and provide at the time of estimating, my business information ,with contact options and license numbers, as well as the contact information for my insurance agent who is always happy to verify my insurance. Then at the signing of the contract I supply the client with an insurance binder in their name with the location of their project. this has been standard practice for me in CT, CO (western), and FL for over 14yrs. My point is That I don’t believe its necessary to "fear" people into their due diligences with examples of shoddy and shifty business practices. If we are really to overcome the stigma associated with this industry, as a product of revamping it needs to adopt a less defensive posture and take on a more responsible proactive one. And than means not just here in the industry, but also on the side of the consumer. Its very easy for most consumers to do a portion of their homework which generally seems to include attaining multiple bids, but when they either don’t follow thru with the remainder of the process or waive it in lieu of a lesser quote, we all find ourselves listening to yet another 6 O’clock news report of a customer getting ripped off. Lets be proactive with our industry and promote it positively on both sides of the fence. I may be going out on a limb here but I will venture to say that the majority of the people that we are fighting the stigma of, are not here. And if they are, lets try and get them on this side of the fence with a preventive, rather than a defensive posture. After all those who don’t have Insurance clearly don’t understand the importance of having it, not just for themselves but for the customers they serve as well.

If any customer wants proof of insurance I simply contact my agent and give him the customers contact info and have him send a certificate of insurance to them. It provides all the necessary info the customer wants so they can feel secure in hiring me.If you can do this you will get the job 99% of the time. Most of my business is referral or repeat business so I hardly ever need to provide it, mostly on new prospects.It goes a long way on credibility w/cust and my agent is glad to provide it.

In oregon you can check on a contractors insurance and bond to make sure its active through the states ccb web site, insurance companys are required to notify them if ther is a lapse and I pay it yearly. Also were required as contractors to give this information to potential customers so they have the information on how to check on a licensed contractor.Seems alot easier then calling ones insurance company and like there gonna give you any information without there clients permission.

John Grott says it very well. Never had a problem providing my customers with proof of insurance. I use a local company, pay it in full. $1,000,000 coverage. Seems like you are making a issue of this. A local phone call tells them I am insured, and I have not had anyone ask for more.

Jerry

In Texas, contractors have to have insurance to pull permits and have to be a member of TRCC for jobs over $10,000.00. If you need proof of insurance for a job, you can request their insurance company issue a certificate of insurance. Most major Texas cities require this certificate in order to pull permits. As an individual, the certificate could be issued in your name. A contractor may require an additional fee for this certificate due to it costing money, usually around $20. An insurance company will not issue this certificate if the contractors insuarance is not currant. In addition to the certificate, you could also get a copy of their policy decleration page so you know their limits of liability.

James when a customer wants proof of Ins I just call my agent with the info like the address of where the work will be performed exc... and that shows it all. I also would like to know just what I should be doing to help me get calls from your investors? I am in Atlanta. I think you have addressed this before some but I am not that good on the computer and need this better explained to the people that are trying to help me. Thanks for all your help! and support! It is great and helpful.

I live in Delaware where insurance laws are pretty strict. When a customer asks for proof of insurance, almost all companies will issue either you or the customer a "certificate of insurance". It's quick, simple and fulproof. I do want to add that in over 15 years in the field, insurance has been a complete loss for me. I once broke $12.00 lamp in a childs room and deducted $50.00 from the customers bil to compensate him.

For licensed contractor work. Getting insurance information is probably a pretty good idea. Are there any small contrctors left these days? That's what I thought.

For handyman work it is somewhat of a non-sequitor.

Most of the work I have been doing lately is PM and shutdown work. There isn't a homeowner perse, not like before, now it is a management company or a bank agent since most of the homes are either abandoned or foreclosed. Most agents I have been dealing with are more interested in whether you are bonded or not. They don't understand that the $3000 flat screen TV in the home is pretty much worthless. Since Wal-Mart can't sell the same one for $729. They really don't have to worry about someone stealing it since there is no market for it. Single owner occupied homes are usually extremely grateful just to have someone who still can answer the phone show up.

I repaired a deck the other week for a gentleman. He wanted to see my insurance and he wanted my insurance information. I told him "no, go call someone else." He said "There is no one else to call", I said, "ok, so what happened here?" He told me they had a party a few days ago and things got somewhat out of hand. I replaced the broken timbers of the deck railing. I somewhat overbuilt it with nuts and bolts instead of deck screws and guyed the rest of the deck for support. He was very satisfied. Paid in cash and has referred others to me.

I carry Insurance and any potential client is welcome to research it, and I always call my Insurance and ask them to fax a copy of my insurance to my clients, therefore everything is on the ups and we get on with what has to be done.

Peace of mind is my greatest concern for a customer, without that your job will go south quickly. When I sign a job or set up a handyman account with an investor, I have all of the information to send them a hard copy of my Declaration page with them listed as the certificate holder. In the event my insurance is cancelled for any reason they are notified by th insurance company. I have it emailed to save time, but they also get a hard copy mailed to them for their records. This puts them at ease and sees that I truly am concerned with their concerns.

Good idea, however most states require insurance and bond, if it laps your license is suspended

As a contractor since 1991, keeping insurance up to date isn't very hard. I do find that the "under cutters" have a tenancy of practicing faulty insurance practices. Experiencing this by hiring certain sub-contractors. Relaxed now seeing nothing ever bad became of it. However,, It is wise to get your contractor have their insurance information sent directly to you by the insurance company. Fraud is quite punishable by law, whether the work is completed or not. All in all it's just good practice to follow this first step. I am in complete agreement with the second step as well, A simple call to the insurance provider out of a phone book or via 411, will most certainly avoid having to deal with any uncertainties. After all, your just trying to get the work done and get through the expenses. Who needs another headache? It's just good business to watch your steps and don't cut corners.

If they request ins. info I will get
a fax number or mailing adress and
have the ins. company send it to them.

I have been in business for 30 years. Upon signing a contract for agreed work to be performed a certificate of insurance is issued to the home owner from our insurance co at the bottom of the form it states that if the policy is terminated the issuing insurer will endeavor to mail 10 days written notice to the certificate holder [home owner ] If the project is of a larger scale my contract also states that the owner take out builders risk insurance on the project as well

As a rule I provide a certificate of insurance to customers at signing.
The certificate includes type and duration of insurance specific to the property/project.
The certificate cannot be issued without prepayment of premium for the coverage period.
This is the only way I am aware of to guaranty that coverage is in place for the duration of a project.

I have the insurance company fax them a copy of the certificates. Simple.

I have never had insurance people who have insurance can afford to do sloppy work and could care less in 35 years I have never had a problem on the job because I take pride in my work and I wont let you talk me into building junk,I dont work for the money I work because I love to work. and I like what I do. You supply the materials I do the work.

I agree 100 percent. Not a problem

For those of you with insurance, it usually does NOT cover your materials, your workmanship or personal injury to yourself, only your liability if you cause damage to something OTHER than what you are working on. For those WITHOUT insurance, get the F out of the business! You're the problem!

jay, you need to lighten up. "For those WITHOUT insurance, get the F out of the business! You're the problem!" what does that mean? whats the problem with the business? insurance is just an added expense to the cost of the job. sometimes, depending on the customer and the surroundings of the job, insurance may be necessary. but its really not necessary most of the time for most "handyman" jobs. using your own correct facts, liability insurance only covers "something else". having or not having insurance doesnt increase or decrease the chance of an incident. it does however magnify the consequences of said incident. ive been working in very rich peoples homes for 20 years. we do have liability insurance, but we have never used it. i have also done many jobs for average people, while without coverage. never had a problem there either. i have seen negligent work performed by insured "high class" companies, and i have seen beautiful craftsman work from uninsured individuals. actually "having" insurance coverage has no bearing on the ethical quality of the work, nor on the bottom-line quality of the work. the world is extremely over-insured, and it's draining us dry as a country. (and im not saying the insurance is not a good thing or that its not necessary, but its not ALWAYS necessary and sometimes its only MARGINALLY necessary. i own several residential properties and flipped several more. ive never used a handyman with insurance(even for roofing and way-high-up tree surgery), for my purposes, they are just too expensive. but for my commercial property management i would always require insurance because of the nature of the beast. there obviously certain situations, specific trades or the ambient value of the property, that would require insurance. we have become a nation of wimps. kids cant ride a bike without a helmet, you cant drive your own kid the the store without a car seat, everyone has to wear a seat belt, we cant paint a room without insurance. give me a break. i do believe in all the above safety measures, but i do believe they should be voluntary. and im certainly not paralyzed by fear driving my kid to the store without a car seat. on certain jobs, the cost of the insurance simply makes the job to expensive for normal homeowners, and many small investors. i would never tell someone to not be insured or to require insurance. but i would suggest that everyone's situation is different and not everything needs to be insured. in fact, right this very second, 1/20/09, i have a master electrician, whos florida license wont transfer to my state, rewiring one of my houses. the contract bid price was $2500 higher to start, and with the variables we came across, im sure it would have been considerably higher. my uninsured price was low enough to make the project possible. so my choices were to not do the job, and sleep in a home that is a fire trap, or dis the insurance, improve my house and equity position, and sleep in a safe house. life told me to ditch the insurance and do the common-sense thing. lifes a trade-off and as a businessman you have to realize this. this being said, I took the responsibility for the job. "shade-tree" handymen, "professional" handymen, and full-blown contractors, theres a place and a need for everyone.

I agree with the first comment. I do the same.
Thank you
Marvin

Demand a insurance cert. then call
the insurance company.

I carry 2 Million in liability which has never been used and I'm in the process of reviewing my coverage which expires soon. Currently I pay $335.00 yearly but I need to add endorsements to cover all I do. Just wondering what the average amount other contractors are paying.

Vincent... Awesome ! Spoken like someone whose been around the block like myself.
I dont need to add anything here because i work the exact same way.For Several Years i used Macomber,Farr & Whitten Ins. "Contractors Liability Insurance." I can Honestly say that i`ve never had to use them EVER or anyone for that matter because i take pride in my work. I rarely ever have to come back to fix a mistake and if i did i`ll replace it out of my own pocket.Usually it`s the other way around and they want add extras or have a Friend that needs work done.
So if everyone just scrolls up there till You see Vincent`s Big artical add his words here. Thanks !

Great idea!! I always provide my ins agents card up front so they can call a get a copy of my cert.
Keep up the great work and thanks for all your help.

I carry both Workers' Comp & Liability, and upon request I'll have my insurance agent fax a copy of both to contracted clients. Only after, I have a signed contract does this occur. I had a client once, who chose to use another builder and used my insurance to cover an incident, of course after attorney fees, I won out in the end. But the aggravation and stress were not worth the trouble. CYA

Although I carry General Liability and on request, have my Insurer supply copies of my coverage, I do not name customers as co-insured as a rule. If they require it I will, but watch out, many Insurance Companies charge a fee for this service. If you do not notify them not to, they will automatically include that customer every time you renew, and charge you.