Renovations and risks webinar

Renovations are exciting, but they contain a lot of moving pieces that introduce risks for property managers and owners. Super partnered with Christopher Tarnok, Partner at DL Partners and Isaac Schwadel, Vice President of Allsure Insurance Brokerage for a panel discussion on how to successfully mitigate risks during a construction project.

Here are the top highlights from the session.

Considerations while planning a construction project

When it comes to construction projects, there are three key phases: planning, execution, and sign-off. Both panelists emphasized the importance of good planning to ensure that the rest of the project goes smoothly.

When planning for a construction project, key considerations include:

• Understanding the necessary insurance coverage and defining that up-front with the property, contractors, lender, and any other parties that have requirements.
• Right-sizing insurance coverage to the scope and scale of the project. Read the fine print on exclusions and necessary clauses. Meeting minimums isn’t always the right choice for every project, especially if it’s a longer project requiring a policy renewal mid-project or a larger project with more risk of claims.
• Establish clear contracts, with strong understanding and alignment on the project scope and any considerations such as building rules.
• Be prepared for things to go wrong!

During the execution phase

While a construction project is underway, continuous communication is vital. For instance, how do you avoid complaints when (inevitably) a neighbor is unhappy with construction happening near them? 

Both panelists highlighted the need to set the right tone in your first interaction with neighbors. Christopher Tarnok pointed out that accessing a neighboring property in order to do work is not a small risk, and that proper agreement terms are necessary to avoid misunderstandings and mitigate future disputes.

Isaac Schwadel added that an ask of a neighbor today might translate into an ask from them later when they need to do work. He advocated for a balanced approach: don’t be permissive, but avoid unreasonable demands and try to foster goodwill.

The panelists also pointed out the importance of maintaining a safe construction site. Ensuring that safety is taken seriously can reduce the risk of injuries. Even small actions, like good signage and a buddy system for on-site workers, can help reduce these risks.

Wrapping up a project successfully

The first question to ask yourself? What defines completion. This goes back to the importance of good communication and clear planning. Project completion typically means that the property is usable or habitable. But the details need to be defined up-front. From there, make sure to include final checks and walkthroughs, all approvals are in order, all subcontractors have been paid, and paperwork—such as lien waivers—are all completed upon confirming project completion.

The fact of the matter is that even after completing a project, issues can still arise. For example, you might face claims years later. To reduce this, keep thorough records, such as documentation for every incident or injury. And of course, ensure insurance policies don’t expire or extended completed operations coverage for issues that may arise after project closure.

Watch the complete webinar recording

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