Insurance

Resolved that NAHB:

1. Assist its affiliates in supporting state legislation to increase the availability of general liability insurance and lower premiums for builders and trade contractors, including but not limited to measures that:
   1. Require consumers and renters to notify builders of alleged construction defects and actual damages and provide builders the opportunity to inspect and cure said defects prior to the initiation of litigation.
   2. Shorten the timeframe in which plaintiffs may bring construction defect litigation under the statute of repose.
   3. Fairly apportion liability to responsible parties in construction defect litigation.
2. Urge Congress to pass legislation that would provide secondary insurance coverage for acts of terrorism.
3. Educate insurance companies about the resources available to NAHB members, including certification, education, manuals and quality assurance programs, in order to encourage insurers to write affordable general liability insurance policies.
4. Encourage insurance companies to more fully utilize and support the resources of the Consortium of Housing Research/Resource Centers.
5. Meet with state insurance commissioners, GSEs, Federal Home Loan Banks and other relevant federal and state regulatory agencies to make them aware of the insurance problems confronting the housing industry.

1. Encourage the use of alternative dispute resolution techniques, such as arbitration and mediation, in order to avoid costly litigation.
2. Provide NAHB members with information that will assist them in obtaining necessary insurance coverage at reasonable rates.
3. Educate NAHB members on fundamentals of risk management and insurance, including:
   1. Avoiding risks,
   2. Minimizing risks,
   3. Transferring risks, and
   4. Handling claims.
4. Encourage the use of express limited warranties as a means of limiting liability exposure for builders.
5. Study the feasibility of a consumer-purchased extended warranty for construction defects to minimize builder liability. 6) Educate consumers and renters relative to home maintenance responsibilities.

Resolution originally adopted: 2002.6, Resolution No. 3

Committees with primary jurisdiction:

• Federal Government Affairs Committee
• State & Local Government Affairs Committee