Understanding insurance requirements for home-elevation contractors in New Jersey 

January 10, 2024

In the world of home renovations, raising a house 10 feet off the ground is no easy task. This ambitious undertaking not only demands expertise in engineering and construction, but it also necessitates strict adherence to insurance regulations—especially in New Jersey.  

Recent updates to the law have created several new requirements—including specific insurance requirements for contractors engaging in such high-stakes projects. Let’s delve into these requirements to ensure your next sky-high home project is fully compliant and secure. 

General home renovation insurance needs 

In New Jersey, every registered home renovation contractor must maintain commercial general liability insurance with a minimum coverage of $500,000 per occurrence. This is a foundational requirement, but it’s just the beginning. Contractors also are obligated to have workers’ compensation and commercial auto liability insurance, essential for safeguarding against potential workplace injuries and vehicular accidents. 

Elevated standards for home-elevation contractors 

When it comes to home-elevation projects, the stake— and the structures—are significantly higher. As a result, insurance requirements are more stringent. 

Under the new law every home elevation contractor engaged in performing home elevations is required to secure and maintain cargo or other insurance that specifically covers home elevation activities, in a minimum amount of $1 million per occurrence to cover damages or other losses to the homeowner.  

Show me the proof 

For a contractor to legally offer home-elevation services in New Jersey, they must not only meet the aforementioned insurance requirements, but also provide proof of such coverage to qualify for registration with the New Jersey Division of Consumer Affairs. This regulatory step ensures that contractors are adequately insured, thereby protecting homeowners and tenants from potential risks and liabilities.

Bradford J. Lachut, Esq.
PIA Northeast

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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