I have been wanting to post about insurance policies and construction projects for quite some time, as there is a great deal of confusion about what kinds of policies are necessary and which items are covered.
Mark Tarpey of Tarpey Insurance Group provided me with this guest posting:
For New Construction, the Purchase and Sales Agreement must be reviewed to determine who is providing the insurance during the course of construction. I have seen contracts that require the builder to carry it and some other contracts require the homeowner to provide the coverage.
The builder will provide the coverage under a Builder’s Risk Policy. The homeowner can purchase a standard homeowner’s policy with an endorsement to cover the theft of materials( this is excluded under a regular homeowner’s policy). If the homeowner owns the lot during the construction phase, they should require the builder to list them as an additional insured under the Builder’s general liability policy.
During a remodeling project, there are two scenarios that need to be addressed. If the homeowner is staying in the house during construction, then they will need to increase their current homeowner’s policy to adequately reflect the new replacement cost of the home. If the homeowner is moving out during the renovation period, they will need to contact their agent to discuss the options available. Typically, the homeowner’s policy is cancelled and a new policy is written to cover the property during the renovation phase and the homeowner’s policy is re-written when they move back in.
In regard to what kind of insurance a contractor should have, the homeowner should require the following:
General Liability - $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products/completed operations aggregate
Workers’ Compensation- $100,000/500,000/100,000 and they should require all subcontractors to have coverage as well
If a contractor does not carry worker’s compensation coverage, the injured employee could sue the homeowner/property owner for failing to provide a safe work place. I have seen claims against the property owner that can be very significant and could exceed insurance limits and the owner could be responsible for the difference.
General Liability covers bodily injury and property damage arising out of the negligence of the contractor. Each policy is different and can have several endorsements that exclude specific types of claims. The general liability is not suppose to cover the poor workmanship of the contractor but it is suppose to cover the resulting bodily injury or property damage( this is very basic information and can be very misleading).
The homeowner’s policy covers the dwelling, any detached structures( up to a sublimit), personal property, additional living expense( a hotel room if you have a fire and can’t stay in the house) and personal liability. There are so many different types of enhancement endorsements that can broaden the coverage( sewer or drains backup, earthquake, jewelry coverage).
Friday, April 17, 2009
A Sifton-area man died
Monday, June 04, 2007
Washington Authorities Investigating Fire Of Home Involved In Foreclosure; Arson Suspected
In Clark County, Washington, The Columbian reports:
"A Sifton-area man died Friday of injuries he suffered in a house fire early Thursday that also severely injured his wife. Also Friday, the Clark County Sheriff’s Office said the fire was arson."
Reportedly, the couple was renting the house from Gary Colemansmith, who said he bought the house at a foreclosure auction last October and rented it back to the couple, the former owners. Colemansmith said the wife had given him written notice recently that the couple would be moving out May 31. For more, see Sifton-area man dies from fire injuries; arson blamed. zebra
Washington Authorities Investigating Fire Of Home Involved In Foreclosure; Arson Suspected
In Clark County, Washington, The Columbian reports:
"A Sifton-area man died Friday of injuries he suffered in a house fire early Thursday that also severely injured his wife. Also Friday, the Clark County Sheriff’s Office said the fire was arson."
Reportedly, the couple was renting the house from Gary Colemansmith, who said he bought the house at a foreclosure auction last October and rented it back to the couple, the former owners. Colemansmith said the wife had given him written notice recently that the couple would be moving out May 31. For more, see Sifton-area man dies from fire injuries; arson blamed. zebra
One person's misery might be another's opportunity.
With foreclosures soaring in Clark County, up 40 percent or more from last year, it might seem like a good time to swoop down and pick up that dream home for pennies on the dollar.
But before you decide to become a foreclosure vulture, just remember the adage: If something sounds too good to be true, it probably is.
"If you watch the late night TV informercials," said Sandy Hendrick, executive director of the Clarkww County Association of Realtors, "you would think there are instant millionaires out there."
Real estate agents caution against the novice trying to buy a home through foreclosure.
"I don't recommend going to the courthouse steps," said Sherri Adams, owner-broker of Century 21 Cascade Pacific. "Because there are people down there who are very knowledge, and they have deep pockets."
"I'm a professional," Adams added. "I have 30 years of experience, and there is no way I would be one of those buyers on the courthouse steps."
Actually, most auctions take place at the gazebo north of the Clark County Courthouse, at the northwest corner of Franklin and 13th streets.
Trustee, or nonjudicial sales, are the quickest and easiest way for a property's title to change hands through a foreclosure process. Lenders can go to court and ask a judge to order the home be sold through a sheriff's auction, but that process tends to be more expensive and time-consuming.
During a trustee sale, the opening bid often reflects what is owed on the mortgage. If no one steps forward to bid, the home becomes the property of the lender.
The auctions, held Friday mornings, attract a small group of insiders who know the market and have done their research.
"It's not a slam dunk," said Gary Colemansmith, a real estate agent who spends most of his time buying homes through foreclosures in Clark County. "If it were a slam dunk, everyone and their brother would be down there bidding. If you can't afford to lose, be real careful."
Colemansmith estimates he has purchased 750 homes through foreclosure in 13 years, beginning in Clark County, Nev., and the past four years in Southwest Washington. Even though he is an experienced player, Colemansmith said he still occasionally stumbles and loses money.
"Everybody wants to get into this," he said. "It's a game that most people don't understand, most real estate professionals don't understand."
Here are just a few of the steps a savvy buyer should take before jumping into the foreclosure game:
Do your research: In 90 percent of foreclosures, the house is worth less than what is owed on the first mortgage, an indication of how far property values have tumbled in the county, Colemansmith said.
Potential purchasers have to search for back taxes owed, as well as outstanding liens by contractors and even the IRS.
Buyers also have to be aware of real estate trends and prices for comparable properties in the area.
Mike Lamb, an associate broker for Windermere Real Estate Stellar Group, said in many instances, a buyer would be better off waiting until the title changes hand and the lender lists the home for a traditional sale.
"The bank has to protect its interest, so it bids what it's owed," he said. "Sometime there are deals. But you can't assume because it is sold on the courthouse steps, there are going to be great deals. The majority of time, there are not."
Bob McMurtrey, principal broker of Civic Realty, specializes in short sales in both Portland and Vancouver. Those happen when homeowners owe more on their mortgages than their properties are worth, known as being "upside down" or "underwater," and they want the lender to absorb the difference.
"There are always opportunities out there to do well, but you really have to study the market," McMurtrey said. "You have to understand the market. And you have to read it everyday. It's like investing in the stock market."
"I guess it could be like poker," he added. "Just because you know what the cards look like doesn't mean you are going to make any money."
Prepare to have deep pockets: Not only are you dealing with pros experienced in researching properties and understanding market values, but you will need major cash reserves. Those experienced with foreclosure auctions already have cashier's checks made out, with a little cushion if the price is pushed up through bidding.
"The biggest hindrance is the lack of capital," Colemansmith said. "You have to pay cash on the spot."
Buying a property is only part of having the necessary cash reserves. Some buyers won't be able to turn around and sell their acquisitions quickly.
"In today's market, a house might sit for a year," said Marley Petersen, a Washougal resident who watches foreclosures as a side business. "Getting insurance for an unoccupied house might be very difficult."
Remember, it's buyer beware: In most cases, homes purchased through foreclosure cannot be physically inspected prior to auction. Buyers will do a drive by and maybe peer through some windows, but they can't be sure about the interior condition.
"Let me tell you some horror stories," Colemansmith said. "You peek in the window. It looks good. You think you've got a buy. It turns out the house is completely contaminated with mold spores."
Buyers have no way of knowing if the wiring is shot, if the plumbing leaks and if the septic tank or sewer line is a mess - literally.
"You could buy an older home and find the sewer is not functioning," Petersen said. "That's $15,000 right there, when you had hoped to make $15,000."
Former owners and residents have been known to strip everything of value, light fixtures, kitchen cabinets, even widows, before vacating.
Colemansmith said some ex-homeowners will go as far as to pour concrete down drainage lines.
"People will do things to sabotage the house because they are angry," he said.
Homes sold through foreclosure auctions are offered "as is," with no guarantees.
"The only guarantee," Adams said, "they get purchasing something on the courthouse steps is if it breaks, they get both pieces."
Don't forget the human angle: Bad things happen to good people. Some buyers were sweet-talked into purchasing palatial homes, despite modest incomes. Others made prudent investments, only to lose jobs or experience other setbacks that caused them to default on mortgages.
"When I first got into the business, I had a hard time coming to terms with that," Colemansmith said. "I've seen some really sad situations. Divorce situations. Someone loses a spouse to tragedy."
People can be living in their former homes following foreclosure auctions, and evictions are rarely pleasant.
"If I didn't bid on the house, the bank would be the owner," Colemansmith said. "And they simply would hire a service to throw them out as soon as possible. I try to be more humane."
But before you decide to become a foreclosure vulture, just remember the adage: If something sounds too good to be true, it probably is.
"If you watch the late night TV informercials," said Sandy Hendrick, executive director of the Clarkww County Association of Realtors, "you would think there are instant millionaires out there."
Real estate agents caution against the novice trying to buy a home through foreclosure.
"I don't recommend going to the courthouse steps," said Sherri Adams, owner-broker of Century 21 Cascade Pacific. "Because there are people down there who are very knowledge, and they have deep pockets."
"I'm a professional," Adams added. "I have 30 years of experience, and there is no way I would be one of those buyers on the courthouse steps."
Actually, most auctions take place at the gazebo north of the Clark County Courthouse, at the northwest corner of Franklin and 13th streets.
Trustee, or nonjudicial sales, are the quickest and easiest way for a property's title to change hands through a foreclosure process. Lenders can go to court and ask a judge to order the home be sold through a sheriff's auction, but that process tends to be more expensive and time-consuming.
During a trustee sale, the opening bid often reflects what is owed on the mortgage. If no one steps forward to bid, the home becomes the property of the lender.
The auctions, held Friday mornings, attract a small group of insiders who know the market and have done their research.
"It's not a slam dunk," said Gary Colemansmith, a real estate agent who spends most of his time buying homes through foreclosures in Clark County. "If it were a slam dunk, everyone and their brother would be down there bidding. If you can't afford to lose, be real careful."
Colemansmith estimates he has purchased 750 homes through foreclosure in 13 years, beginning in Clark County, Nev., and the past four years in Southwest Washington. Even though he is an experienced player, Colemansmith said he still occasionally stumbles and loses money.
"Everybody wants to get into this," he said. "It's a game that most people don't understand, most real estate professionals don't understand."
Here are just a few of the steps a savvy buyer should take before jumping into the foreclosure game:
Do your research: In 90 percent of foreclosures, the house is worth less than what is owed on the first mortgage, an indication of how far property values have tumbled in the county, Colemansmith said.
Potential purchasers have to search for back taxes owed, as well as outstanding liens by contractors and even the IRS.
Buyers also have to be aware of real estate trends and prices for comparable properties in the area.
Mike Lamb, an associate broker for Windermere Real Estate Stellar Group, said in many instances, a buyer would be better off waiting until the title changes hand and the lender lists the home for a traditional sale.
"The bank has to protect its interest, so it bids what it's owed," he said. "Sometime there are deals. But you can't assume because it is sold on the courthouse steps, there are going to be great deals. The majority of time, there are not."
Bob McMurtrey, principal broker of Civic Realty, specializes in short sales in both Portland and Vancouver. Those happen when homeowners owe more on their mortgages than their properties are worth, known as being "upside down" or "underwater," and they want the lender to absorb the difference.
"There are always opportunities out there to do well, but you really have to study the market," McMurtrey said. "You have to understand the market. And you have to read it everyday. It's like investing in the stock market."
"I guess it could be like poker," he added. "Just because you know what the cards look like doesn't mean you are going to make any money."
Prepare to have deep pockets: Not only are you dealing with pros experienced in researching properties and understanding market values, but you will need major cash reserves. Those experienced with foreclosure auctions already have cashier's checks made out, with a little cushion if the price is pushed up through bidding.
"The biggest hindrance is the lack of capital," Colemansmith said. "You have to pay cash on the spot."
Buying a property is only part of having the necessary cash reserves. Some buyers won't be able to turn around and sell their acquisitions quickly.
"In today's market, a house might sit for a year," said Marley Petersen, a Washougal resident who watches foreclosures as a side business. "Getting insurance for an unoccupied house might be very difficult."
Remember, it's buyer beware: In most cases, homes purchased through foreclosure cannot be physically inspected prior to auction. Buyers will do a drive by and maybe peer through some windows, but they can't be sure about the interior condition.
"Let me tell you some horror stories," Colemansmith said. "You peek in the window. It looks good. You think you've got a buy. It turns out the house is completely contaminated with mold spores."
Buyers have no way of knowing if the wiring is shot, if the plumbing leaks and if the septic tank or sewer line is a mess - literally.
"You could buy an older home and find the sewer is not functioning," Petersen said. "That's $15,000 right there, when you had hoped to make $15,000."
Former owners and residents have been known to strip everything of value, light fixtures, kitchen cabinets, even widows, before vacating.
Colemansmith said some ex-homeowners will go as far as to pour concrete down drainage lines.
"People will do things to sabotage the house because they are angry," he said.
Homes sold through foreclosure auctions are offered "as is," with no guarantees.
"The only guarantee," Adams said, "they get purchasing something on the courthouse steps is if it breaks, they get both pieces."
Don't forget the human angle: Bad things happen to good people. Some buyers were sweet-talked into purchasing palatial homes, despite modest incomes. Others made prudent investments, only to lose jobs or experience other setbacks that caused them to default on mortgages.
"When I first got into the business, I had a hard time coming to terms with that," Colemansmith said. "I've seen some really sad situations. Divorce situations. Someone loses a spouse to tragedy."
People can be living in their former homes following foreclosure auctions, and evictions are rarely pleasant.
"If I didn't bid on the house, the bank would be the owner," Colemansmith said. "And they simply would hire a service to throw them out as soon as possible. I try to be more humane."
Thursday, April 16, 2009
The Owner
I have been out of work since 10-2007 because of being a victim of a crime here in Vancouver Washington. I have been denied services from the State as well as any kind of help from the Crime Victims/Witness Program of Washington State.
So I find myself on craigslist, looking for some Sheetrock/drywall work. I did and I had some friends of mine help me out. I was going to make money on the job as a whole after paying friends to do the labor. It didn't work out that way.
The house located at 1014 W 37Th ST 98660 did not have heat when the tapers went in to tape. The house sat for a week wet until the owner Gary Colemansmith of Brush Prairie WA had the electrical panel installed and the illegal one disconnected. Mr. Colemansmith came in and installed wall heaters and the drywall mud dried. I am told from the builder Tim Rose that the owner did not have any insurance on the property so make sure I did not keep the heaters on.
The same day as the heaters were installed I had a very good friend die. I took her death real bad as I never had anyone that close to me die. I went to Hotel Hope for five days to get back on my anti-depressants and when I return to the job Mr. Rose told me he is going to have to charge me because the house was not finished when he wanted.
He said he gave Mr. Coelmansmith a thousand dollar's back and I was going to have to do extra work because of this or I was not going to be paid. I work on this house for days after the funeral by myself and was shocked by a 220 open wire left on by the builder or maybe by the owner, I fell to the ground breaking a sanding pole in two. When a neighbor who witness the accident went to the panel every breaker was on.
They put myself and everyone else who was to maybe come into contact with open wires at a risk for injury. I told Mr. Rose what had happen and he ask me if I shut them off. I replied I did. The following day I was limping and he ask me what was wrong I told him again about the fall. He says in front of a witness that he did not hear me tell him I was shocked. He lied.
I began to ask myself what is going on why am I being treated so unfair? Who are these people? I grabbed some info from the building permit bag and then 'google' Gary Colemansmith as well as Tim Rose. What I came up with surprised the heck out of me but it was starting to make since.
The reason for Mr. Gary Colemansmith not having any home owner insurance was because he was implicated in the
http://homeequitytheft.blogspot.com/search?q=gary+colemansmith
I believe this needs to be investigated as this house and hundreds more are being built by a not so nice of a person. And when I emailed the builder he changed his whole tune and said he would pay me up today and never did he mention a thing about the above blog. But did say I did very good job and for me to have a good year. So why would he not mention this?
Guilty of wrong reason..
So I find myself on craigslist, looking for some Sheetrock/drywall work. I did and I had some friends of mine help me out. I was going to make money on the job as a whole after paying friends to do the labor. It didn't work out that way.
The house located at 1014 W 37Th ST 98660 did not have heat when the tapers went in to tape. The house sat for a week wet until the owner Gary Colemansmith of Brush Prairie WA had the electrical panel installed and the illegal one disconnected. Mr. Colemansmith came in and installed wall heaters and the drywall mud dried. I am told from the builder Tim Rose that the owner did not have any insurance on the property so make sure I did not keep the heaters on.
The same day as the heaters were installed I had a very good friend die. I took her death real bad as I never had anyone that close to me die. I went to Hotel Hope for five days to get back on my anti-depressants and when I return to the job Mr. Rose told me he is going to have to charge me because the house was not finished when he wanted.
He said he gave Mr. Coelmansmith a thousand dollar's back and I was going to have to do extra work because of this or I was not going to be paid. I work on this house for days after the funeral by myself and was shocked by a 220 open wire left on by the builder or maybe by the owner, I fell to the ground breaking a sanding pole in two. When a neighbor who witness the accident went to the panel every breaker was on.
They put myself and everyone else who was to maybe come into contact with open wires at a risk for injury. I told Mr. Rose what had happen and he ask me if I shut them off. I replied I did. The following day I was limping and he ask me what was wrong I told him again about the fall. He says in front of a witness that he did not hear me tell him I was shocked. He lied.
I began to ask myself what is going on why am I being treated so unfair? Who are these people? I grabbed some info from the building permit bag and then 'google' Gary Colemansmith as well as Tim Rose. What I came up with surprised the heck out of me but it was starting to make since.
The reason for Mr. Gary Colemansmith not having any home owner insurance was because he was implicated in the
http://homeequitytheft.blogspot.com/search?q=gary+colemansmith
I believe this needs to be investigated as this house and hundreds more are being built by a not so nice of a person. And when I emailed the builder he changed his whole tune and said he would pay me up today and never did he mention a thing about the above blog. But did say I did very good job and for me to have a good year. So why would he not mention this?
Guilty of wrong reason..
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