by jrhillsboro » Wed Sep 08, 2010 04:27 pm
I was installing a ceramic tile shower, a ceramic counter top, and I built some cabinets for a friend of my wife, for hire, as a side job. I am not a professional, quote, but I know how, so I agreed to do it. I needed the money. When the job was almost done, the couple left town, and a fire completely destroyed the home, and my tools. I do not have a homeowners policy because we rent an apartment. The fire was not caused by arson or an act of God, and the adjusters have determined that the cause was 90% probably caused by electrical problems. Is the homeowner liable for my tools, and does an HO 5 Policy with State Farm provide him any coverage? If so, are there any limits, and what portion of his policy would cover it. I have not been told yes or no, nor has the homeowner. I have a couple of other jobs I can't do because I have no tools, so I am idle. I know that I need my own insurance, but at the point I took this job I really had only done 1 other job for hire, and I never dreamed I could make a living doing this. But the good side is the phone keeps ringing:) So I will get insurance, but that doesn't help this time.
Posted: Thu Sep 09, 2010 12:16 pm Post Subject:
I have not been told yes or no, nor has the homeowner.
I guess it would be easier for you guys to have a word with your insurer regarding this.
he fire was not caused by arson or an act of God, and the adjusters have determined that the cause was 90% probably caused by electrical problems.
If it's caused due to electrical problems then it's a different thing altogether. I suppose it's gonnabe considered as a maintenance issue.
Posted: Mon Sep 13, 2010 11:13 pm Post Subject:
The HO-5 policy covers the insureds tools, and damage done to the property of others due to the insured's negligence. Doesn't sound like that's the case, so the answer is, most likely, you'll have to buy new tools on your own dime.
Many licensed contractors have property coverage on their tools in addition to general liability coverage in case they damage someone's property.
Not to add insult to injury, but you have to be very careful about trying to pursue a claim in this event anyway. As an unlicensed contractor, in California for example, you could not accept any job for which the total labor and materials exceeds $500. You could not demand payment for an unpaid job that exceeds $500, and a property owner can legally avoid paying an unlicensed contractor any amount over $500, even if the job is completed to his satisfaction. So any attempt by an unlicensed contractor to pursue a claim in excess of $500 usually raises the attention of the Contractor's License Board and they hit the person with a citation and fine, which is far more than the $500+ for the job.
Posted: Wed Sep 15, 2010 11:43 am Post Subject:
So any attempt by an unlicensed contractor to pursue a claim in excess of $500 usually raises the attention of the Contractor's License Board and they hit the person with a citation and fine, which is far more than the $500+ for the job.
So we see how the California license board wants only licensed contractors to work within the state.
Many licensed contractors have property coverage on their tools in addition to general liability coverage in case they damage someone's property.
I always knew that the general liability coverage could be helpful in protecting us from damages caused to someone's property. I didn't know how property coverage could actually help us in this regard - thanks for the info.
Posted: Thu Sep 16, 2010 04:29 pm Post Subject:
So we see how the California license board wants only licensed contractors to work within the state.
I don't think California is much different from the other states in this respect. It's all about protecting consumers.
Same is true about all the various Depts of Insurance across the country when it comes to agent licensing and insurer certificates of authority.
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