We were told that on our build, because we are owner/builders, getting insured would't happen. This was one persons statement that we never followed up on. We have insurance in the event that we get injured, and the subs that we have used have their own insurance and bonded as mandated by our state.Their insurance covers a situation where they do damage to the house, or if the work they performed leads to something disastrous, something to that effect.

If we hired any help outside of a licensed/bonded subcontractor, we would be required to have workmans comp for that hired person.

You would be wise to make sure that all your subs are covered by their own insurances and look into getting an addition to your homeowners policy that will cover your project in the event of an incident that is not covered by any subs or your builder/carpenter. Make sure you and everyone concerned is covered.I would check into your insurance company that covers your homeowners policy for advice.

I dont know how this will save you money,but will probably be an extra expense that you would be wise not to go without.

You stated that your builder/carpenter said that the reason his cost to you is less if you get your own insurance?

I would ask him for a detailed explanation because if he is not covered by his own insurance,(might not be a requirement in your area),then appearently you would need to be to cover any mishaps that might occur.

I would be a little concerned about hiring someone who does not have their own coverage.

My guess is there's nothing sinister about his "costs" statement. I don't write GC coverage, mostly because NO ONE I deal with will write it. I do have several personal lines customers who are contractors and to a man, they all say insurance for a GC is next to impossible to obtain. If they can find some one to write it, the premiums are absurd. My guess is that with so many horror stories about shoddy workmanship, insurers claim experience has been lousy.

In short, his expenses are less with no GC insurance to buy. That doesn't mean he doesn't have insurance for his particular craft (trim carp, framing, etc). He also has a much lower aggravation level just being a sub.

When I built my kitchen addition I upped my liablility to a million dollars for an additional $52.00 a year through State Farm. I had subs on the job and it was worth the minimal cost. I still have it. The addition was in 2001.
Ron

Your GC is either unlicensed or has a restricted license. The people that work for him are unlicensed. That's why he wants you to get the permit as owner builder. That way, you are responsible for the workmanship on your home. You are responsible for all medical bills if anyone is hurt. You are responsible for withholding all the state and federal withholding taxes. You are required to hire people who have contractors licenses that do any work on your house of more than $500 labor and material. Any shoddy workmanship, you can't take him to court for, you are responsible. If you want to check him out, and also the laws concerning owner/builder requirements, (by your post name I assume you live in California)go to CSLB.ca.gov on the web. There you can find out about this person using his name, or his business name, or his contractor license number if he has one. This guy is a shister. Check it out. It won't take long, then please return to this forum and let us all know what you find out. What a crock.