I carry separate insurances on my home and business and they are located at the same address. My commercial insurance rates take into account that I am primarily a wholesaler. If I did more retail, they'd soar. It's very tempting to think of the higher profit potential of selling retail versus wholesale but do consider that once you do this, you likely won't be able to handle both the growing end of it and the selling end of it without additional help and it takes an enormous amount of additional sales to gain the additional profit to pay hired help. Then you get to think about things like workman's comp, and withholding and keeping up with the work laws. Even though I did not advertise a lot of people used to show up at my business strictly by word of mouth, wanting me to sell to them on a retail level. I lost all sense of privacy and had a hard time trying to deal with the customers as their children were let loose to "explore" the other greenhouses, pond, farm animals. They knew I lived on site, so when the other stores closed, they'd just come up my drive expecting me to open up for them. I'm talking six something in the morning and once at ten thirty at night. Everyone is different, and you may not mind that kind of commitment, but to me it wasn't worth never having a day off, or being able to sit at my table and eat a whole meal without interruptions.

Your builders risk policy is a homeowner's policy minus personal property coverages that are generally 70 - 75% of the dwelling coverage. Your personal property won't be there and won't need as much coverage at this location. You should definately have a renters policy for your personal property at the unit you are renting and yes it will have some liability as well. You will want your own liability coverage in the event someone walks on your property and gets hurt or a child falls into a whole/basement/well etc. As materials are delivered they will be covered which is very important. Theives like to go ahead and help themselves to materials. Fire is also covered, I had a customer do what your doing and each time he got close to being done, the house burned down to the ground. Needless to say, he didn't build again but can't sell the property neither. There will be other coverage's but that will depend on which state your in and the policy coverage's issued there.

Redss - My brother helps me out once a week, working on a house. I KNOW that if he cuts his hand off, or falls off a ladder - he will NOT sue me. Won't happen. Some of his actions around a saw make me cringe. We've talked about it... You are proposing to HIRE several people, pay them, and be an employer. This is to save money. Recently - a Comcast employee working at a Wall-Mart tackled a person who was abducting a little girl. One of the reasons it made the news - is because the 22yr old young man - is in a wheelchair. Paralyzed. He fell off a ladder - hanging Christmas tree lights... Bottom line: If you like your home, and don't wish it taken from you; your wages garnished for YEARS - you will do one of several things... 1. Do all the work yourself; or have only trusted, true friends help you out. NO pay! 2. Hire a reputable firm, which has required and necessary insurance; or hire an insured contractor - who carries bond, liability, etc; and is responsible for themselves - if they get hurt. 3. If you can't do #1; WAIT till you have the money to do #2. A neighboer of mine, recently had a man fall over 25' from a tree to the ground. Luckily - the person lived, and they had hired a reputable firm - which carries their own insurance, etc. Your home insurance will never cover you being an employer, and prevent you from losing your home because of high medical costs... You ARE putting yourself at extreme liability risk - if you hire some people to do work on your property. tryinbrian - Lawyers ARE smart - and they DO give away free legal advice all the time. Just depends on your attitude, and how you ask.

It isn't "getting busted" by the inspector you need to worry about either, its the liability factor, the LONG TERM liability factor! If you sell that home in say 10 years and another 10 go by and God forbid there's a fire and someone dies, THAT is a multi-million dollar lawsuit then and NO your homeowners usually will not cover unpermitted and thus illegal work done, which will then wipe you out financially, unless you have a few mil laying around to pay off the plaintiffs! Even if an electrician does the job right, there is still a chance things can go wrong. Nothing in life is guaranteed. If you know what you are doing and do the job right, it is not any different than an electrician. You have to know your limits though (installing a new panel for example). That being said, permits are there to protect the homeowner and to ensure the contractor (or the homeowner) does the job correctly. So they are a good thing. In general, when a contractor does not want to apply for permit that is a big red flag because they may try to do shoddy work and there is no one to check on it. As far as safety goes, the contractor could probably wire it fine, he simply is not licensed so an inspector in your location might not look at it even if the wiring was good. Wiring a new addition is not rocket science btw (make a plan, run the wire, finishing). Many places dont require a licensed electrician for remodels, but with a permit, it is still inspected whether you or a contractor did the work. Even if you did the electrical and something failed on the next homeowner, houses are for sale as-is. If the job was done correctly they wont be able to come after you unless you did something intentionally to damage the house before the closing AND they can prove that it was your intent to do the damage. Stop fear mongering.