Coverage requirements

Property Restoration Contractors

Construction & Trade Contractors76% completeness
Run gap analysis

Last updated August 2026 · Maintained and reviewed by the Advocate Insurance Consultants coverage research team.

Overview

What an adequately protected Property Restoration Contractors program looks like

Restoration firms rebuild homes and other buildings damaged or destroyed by natural or man-made disasters such as hurricanes, fires, and leaking pipes. Work frequently involves disturbing hazardous materials in existing structures. Environmental impairment liability is the leading exposure, including the spread of mold or bacteria, asbestos cross-contamination, and the release of lead dust during restoration. The exposures that drive property restoration contractors form the basis of this Advocate Standard profile, which benchmarks Auto Liability, General Liability, Pollution Liability, Worker's Compensation, Fidelity Bond, setting limit and deductible standards alongside carrier financial-strength requirements.

Key takeaways

  • Spans 144 published requirements across 41 coverage type-peril pairs.
  • Applies to 2 asset types: Commercial Office Building, Contractor.
  • Covers 15 coverage types and 14 distinct perils.

At a glance

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Completion score

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9 of 41 WIM pairs required

Coverage tower

Required limits by coverage type and peril

Property8 coverage types

Fidelity Bond

Overall limit$100K

Business Income

Flood≥ Business Income Amount for Buildings in an SFHA
TRIA - Property≥ Business Income Amount
Earthquake≥ Business Income Amount
Named Storm≥ Business Income Amount
Water / Sewer Backup≥ Business Income Amount
Wildfire≥ Business Income Amount
Wind Hail≥ Business Income Amount
Overall limit≥ Business Income Amount

Physical

Flood≥ RCV / Insurable Value of First 2 Floors Above Grade + any Floors Below Grade of Buildings Located in an SFHA
TRIA - Property≥ RCV of Existing Structure / Insurable Value
Earthquake≥ RCV of Existing Structure / Insurable Value
Named Storm≥ RCV of Existing Structure / Insurable Value
Water / Sewer Backup≥ RCV of Existing Structure / Insurable Value
Wildfire≥ RCV of Existing Structure / Insurable Value
Wind Hail≥ RCV of Existing Structure / Insurable Value
Overall limit≥ RCV of Existing Structure / Insurable Value

Builder's Risk

Overall limit≥ RCV of Existing Structure / Insurable Value

Business Personal Property

Overall limit≥ RCV of Existing Structure / Insurable Value

Inland Marine

Fire≥ Value of Property in Care, Custody, or Control / Scheduled Inland Marine Value
Theft≥ Value of Property in Care, Custody, or Control / Scheduled Inland Marine Value
Water Damage≥ Value of Property in Care, Custody, or Control / Scheduled Inland Marine Value
Overall limit≥ Value of Property in Care, Custody, or Control / Scheduled Inland Marine Value

Limited Fungus

Overall limit$15K

Ordinance or Law

Earthquake≥ RCV of Existing Structure / Insurable Value
Flood≥ RCV of Existing Structure / Insurable Value
Named Storm≥ RCV of Existing Structure / Insurable Value
Wind Hail≥ RCV of Existing Structure / Insurable Value
Overall limit≥ RCV of Existing Structure / Insurable Value
Liability7 coverage types

General Liability

Overall limit$2M
Assault & Battery$5M

Auto Liability

Hired & Non-Owned Auto$5M
Owned Auto$5M
Overall limit$5M

Disability Liability

Overall limit$2M

Employer's Liability

Overall limit$2M

Worker's Compensation

Overall limit$500K

Pollution Liabiltiy

Overall limit$2M

Terrorism Liability

TRIA - Liability$2M
Overall limit$2M

Requirements

Full requirement set for Property Restoration Contractors

Every requirement in the Advocate standard, 144 rows across limits, deductibles, carrier rating, and presence checks. Search and filter to drill in.

Group
Type
Peril

Showing 50 of 144 matching · 144 total

RequirementPerilRequirement typeApplicabilityRequirement
Property › Builder's RiskAcceptable Blanket Builder's Risk DeductibleOverallDeductibleBlanketBlanket Builder's Risk deductible must not exceed $50,000.
Property › Business IncomeAcceptable Blanket Business Income DeductibleOverallDeductibleBlanketBlanket Business Income deductible must not exceed $50,000.
Property › Business IncomeAcceptable Blanket Business Income Earthquake DeductibleEarthquakeDeductibleBlanketBlanket Business Income Earthquake deductible must not exceed 10% of the insured value.
Property › Business IncomeAcceptable Blanket Business Income Named Storm DeductibleNamed StormDeductibleBlanketBlanket Business Income Named Storm deductible must not exceed 5% of the insured value.
Property › Business IncomeAcceptable Blanket Business Income Wind Hail DeductibleWind HailDeductibleBlanketBlanket Business Income Wind Hail deductible must not exceed 5% of the insured value.
Property › Business Personal PropertyAcceptable Blanket Business Personal Property DeductibleOverallDeductibleBlanketBlanket Business Personal Property deductible must not exceed $50,000.
Property › Inland MarineAcceptable Blanket Inland Marine DeductibleOverallDeductibleBlanketBlanket Inland Marine deductible must not exceed $50,000.
Property › Limited FungusAcceptable Blanket Limited Fungus DeductibleOverallDeductibleBlanketBlanket Limited Fungus deductible must not exceed $50,000.
Property › Ordinance or LawAcceptable Blanket Ordinance or Law DeductibleOverallDeductibleBlanketOrdinance or Law deductible must not exceed $50,000.
Property › PhysicalAcceptable Blanket Physical DeductibleOverallDeductibleBlanketBlanket Physical deductible must not exceed $50,000.
Property › PhysicalAcceptable Blanket Physical Earthquake DeductibleEarthquakeDeductibleBlanketBlanket Physical Earthquake deductible must not exceed 10% of the insured value.
Property › PhysicalAcceptable Blanket Physical Named Storm DeductibleNamed StormDeductibleBlanketBlanket Physical Named Storm deductible must not exceed 5% of the insured value.
Property › PhysicalAcceptable Blanket Physical Wind Hail DeductibleWind HailDeductibleBlanketBlanket Physical Wind Hail deductible must not exceed 5% of the insured value.
Property › Builder's RiskAcceptable Scheduled Builder's Risk DeductibleOverallDeductibleScheduledScheduled Builder's Risk deductible must not exceed $50,000.
Property › Business IncomeAcceptable Scheduled Business Income DeductibleOverallDeductibleScheduledScheduled Business Income deductible must not exceed $50,000.
Property › Business IncomeAcceptable Scheduled Business Income Earthquake DeductibleEarthquakeDeductibleScheduledScheduled Business Income Earthquake deductible must not exceed 10% of the insured value.
Property › Business IncomeAcceptable Scheduled Business Income Named Storm DeductibleNamed StormDeductibleScheduledScheduled Business Income Named Storm deductible must not exceed 5% of the insured value.
Property › Business IncomeAcceptable Scheduled Business Income Wind Hail DeductibleWind HailDeductibleScheduledScheduled Business Income Wind Hail deductible must not exceed 5% of the insured value.
Property › Business Personal PropertyAcceptable Scheduled Business Personal Property DeductibleOverallDeductibleScheduledScheduled Business Personal Property deductible must not exceed $50,000.
Property › Inland MarineAcceptable Scheduled Inland Marine DeductibleOverallDeductibleScheduledScheduled Inland Marine deductible must not exceed $50,000.
Property › Limited FungusAcceptable Scheduled Limited Fungus DeductibleOverallDeductibleScheduledScheduled Limited Fungus deductible must not exceed $50,000.
Property › Ordinance or LawAcceptable Scheduled Ordinance or Law DeductibleOverallDeductibleScheduledOrdinance or Law deductible must not exceed $50,000.
Property › PhysicalAcceptable Scheduled Physical DeductibleOverallDeductibleScheduledScheduled Physical deductible must not exceed $50,000.
Property › PhysicalAcceptable Scheduled Physical Earthquake DeductibleEarthquakeDeductibleScheduledScheduled Physical Earthquake deductible must not exceed 10% of the insured value.
Property › PhysicalAcceptable Scheduled Physical Named Storm DeductibleNamed StormDeductibleScheduledScheduled Physical Named Storm deductible must not exceed 5% of the insured value.
Property › PhysicalAcceptable Scheduled Physical Wind Hail DeductibleWind HailDeductibleScheduledScheduled Physical Wind Hail deductible must not exceed 5% of the insured value.
General › AllDo Not Allow Premium FinancingOverallOtherAllPremium-financed insurance is not accepted.
General › AllDo Not Allow Premium FinancingOverallOtherAllPremium-financed insurance is not accepted.
Liability › General LiabilityElevated GL Aggregate for Subcontracted WorkOverallLimitAllContractors subcontracting significant work must carry a GL aggregate of at least $2,000,000.
Liability › General LiabilityExcess / Umbrella Required for Elevated WorkOverallLimitAllContractors performing elevated or high-rise work must carry umbrella limits of at least $5,000,000.
Liability › General LiabilityExtended Completed Operations for Residential ConstructionOverallLimitAllResidential contractors must carry a Products-Completed Operations aggregate of at least $2,000,000.
General › AllInsurance Carrier RatingOverallCarrier RatingAllCarrier must have an AM Best Rating that meets the required Letter and Financial Size ratings.
General › AllInsurance Carrier RatingOverallCarrier RatingAllCarrier must have AM Best rating >= A- and size >= VII.
Liability › Worker's CompensationStatutory Workers Compensation ConfirmedOverallOtherAllWorkers Compensation must be at statutory limits with Employers Liability.
Liability › Auto LiabilitySufficient Auto Liability - Hired & Non-Owned Auto Excess/Umbrella LimitHired & Non-Owned AutoLimitAllHired & Non-Owned Auto excess/umbrella sublimit must be at least $5,000,000.
Liability › Auto LiabilitySufficient Auto Liability - Hired & Non-Owned Auto LimitHired & Non-Owned AutoLimitAllHired & Non-Owned Auto sublimit must be at least $1,000,000.
Liability › Auto LiabilitySufficient Auto Liability - Owned Auto Excess/Umbrella LimitOwned AutoLimitAllOwned Auto excess/umbrella sublimit must be at least $5,000,000.
Liability › Auto LiabilitySufficient Auto Liability - Owned Auto LimitOwned AutoLimitAllOwned Auto sublimit must be at least $1,000,000.
Liability › Auto LiabilitySufficient Auto Liability Excess/Umbrella LimitOverallLimitAllAuto Liability must carry an excess/umbrella limit of at least $5,000,000.
Liability › Auto LiabilitySufficient Auto Liability LimitOverallLimitAllAuto Liability must carry a combined single limit of at least $1,000,000.
Property › Builder's RiskSufficient Blanket Builder's Risk LimitOverallLimitBlanketBlanket Builder's Risk limit must be at least the RCV / insurable value.
Property › Business IncomeSufficient Blanket Business Income - Certified Acts of Terrorism LimitTRIA - PropertyLimitBlanketBlanket Business Income (Certified Acts of Terrorism) limit must be at least the 12-month business income value.
Property › Business IncomeSufficient Blanket Business Income - Earthquake LimitEarthquakeLimitBlanketBlanket Business Income (Earthquake) limit must be at least the 12-month business income value.
Property › Business IncomeSufficient Blanket Business Income - Named Storm LimitNamed StormLimitBlanketBlanket Business Income (Named Storm) limit must be at least the 12-month business income value.
Property › Business IncomeSufficient Blanket Business Income - Water / Sewer Backup LimitWater / Sewer BackupLimitBlanketBlanket Business Income (Water / Sewer Backup) limit must be at least the 12-month business income value.
Property › Business IncomeSufficient Blanket Business Income - Wildfire LimitWildfireLimitBlanketBlanket Business Income (Wildfire) limit must be at least the 12-month business income value.
Property › Business IncomeSufficient Blanket Business Income - Wind Hail LimitWind HailLimitBlanketBlanket Business Income (Wind Hail) limit must be at least the 12-month business income value.
Property › Business IncomeSufficient Blanket Business Income LimitOverallLimitBlanketBlanket Business Income limit must be at least the 12-month business income value.
Property › Business Personal PropertySufficient Blanket Business Personal Property LimitOverallLimitBlanketBlanket Business Personal Property limit must be at least the RCV / insurable value.
Property › Inland MarineSufficient Blanket Inland Marine - Fire LimitFireLimitBlanketBlanket Inland Marine (Fire) limit must be at least the value in care, custody & control.

94 more requirements

Compliance

Who requires Property Restoration Contractors

  • Property restoration contractors insurance is required by the insurers, owners, and lenders who depend on post-disaster rebuilding.
  • Property owners and facility managers require a certificate of insurance with additional insured status and contractors pollution liability before restoration begins, because disturbing damaged structures can spread contaminants.
  • Insurance carriers assigning restoration work verify general liability, workers' compensation, and environmental coverage as a condition of their preferred-vendor programs.
  • General contractors on large rebuilds confirm coverage, lenders and investors financing damaged properties require proof before funding, and brokers coordinate pollution and general liability limits because mold, asbestos cross-contamination, and lead dust are the trade's leading exposures.

Carrier standard. Carrier must have an AM Best Rating that meets the required Letter and Financial Size ratings.

Advocate runs these checks automatically for the brokers who place construction & trade contractors coverage.

Exclusions

What Property Restoration Contractors does not cover

  • Property restoration contractors insurance carries important limits.
  • General liability includes a standard pollution exclusion, so mold, bacteria, asbestos, and lead-dust claims respond only under the separate pollution liability line that is carried; confirming that line covers those specific contaminants is essential.
  • Cyber, employment practices, and directors and officers exposures go unaddressed in this program.
  • Professional liability for scope-of-loss estimating and remediation-protocol advice is not included.
  • The cost to redo the contractor's own faulty restoration is excluded as "your work," and long-latency mold and bacteria claims may be limited by claims-made pollution terms or by the Limited Fungus sublimit.
  • Owned drying and extraction equipment relies on inland marine rather than general liability.

Risk advisory

Typical coverage gaps in Construction & Trade Contractors

Property restoration contractors face environmental impairment as the leading exposure because rebuilding damaged structures spreads mold and bacteria, cross-contaminates asbestos, and releases lead dust.

  • Confirm the contractors pollution liability policy specifically covers mold, bacteria, asbestos, and lead, and review the Limited Fungus sublimit, which is often far lower than a serious mold claim requires.
  • Check whether pollution coverage is claims-made and whether an extended reporting period is available, since mold and bacteria claims can develop over time.
  • Because scope-of-loss estimating and protocol decisions create a professional exposure the base program omits, evaluate professional liability.
  • Verify workers' compensation reflects water-damage restoration hazards and peaked-roof work.
  • Confirm business income and property limits if the firm warehouses building materials, schedule drying and extraction equipment on inland marine, and document remediation protocols and clearance testing to defend contamination claims.

FAQ

Frequently asked questions

What insurance do property restoration contractors need?

Property restoration contractors need general liability, contractors pollution liability covering mold, bacteria, asbestos, and lead, workers' compensation, employer's liability, commercial auto, and inland marine for drying and extraction equipment. Because disturbing damaged structures spreads contaminants, pollution coverage is essential, and owners and insurers require it plus additional insured status before restoration begins.

Does restoration insurance cover mold claims?

Restoration insurance covers mold claims only through contractors pollution liability, not standard general liability, which excludes pollution and fungi. Even then, a Limited Fungus sublimit may cap recovery well below a serious mold claim, so restoration contractors should confirm mold and bacteria are specifically covered and review the sublimit against their real exposure.

Why do restoration contractors need pollution liability?

Restoration contractors need pollution liability because rebuilding disaster-damaged structures spreads mold and bacteria, cross-contaminates asbestos, and releases lead dust, all excluded by general liability's pollution provision. Owners and the insurance carriers assigning the work commonly require environmental coverage, and it funds contamination claims that would otherwise fall outside the contractor's program.

What is the Limited Fungus sublimit in restoration insurance?

The Limited Fungus sublimit in restoration insurance is a capped amount of coverage for mold and fungi-related claims, often much lower than a full policy limit. Because restoration work frequently involves water damage and mold, contractors should review this sublimit carefully and consider higher pollution limits, since a single mold claim can quickly exceed a modest sublimit.

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About this coverage standard

This profile is maintained by the Advocate Insurance Consultants coverage research team, which maintains the Coverage Library benchmarks against the World Insurance Model taxonomy and reviews each standard against live market placements. It is general guidance, not legal or coverage advice. Verify requirements against the actual policy and contract.

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