Builder requires 2 million coverage

Hi all,

First post here.
Megatel (builder) has an inflated amount of insurance coverage requiring 2 million to inspect their new homes. I haven’t found this with any other builders in Texas. I know I can just turn the jobs down, and I do, but this seems a deliberate attempt to keep inspectors away from inspecting this builder as Texas mandates the minimum insurance requirements. Just curious what others think? Is this legal? The home is not even valued close to 2 million.

They own it, they set the rules.
I carry 3M.
Freaks them out when they think they have the upper hand, and I whip out a copy of my 3M coverage!!
Granted, I have it because I do a lot of Commercial properties, but he doesn’t need to know that.
BTW… If you have a lot of these potential jobs, just get it. It’s not that much more expensive than what your state requires (if it does).


Yes, they can set up whatever $$ amount they want.

You think that gaggle of workers pouring out of the van in the morning each has $2 million coverage?


They may be wanting $2M in liability coverage. Creating a $2M liability incident is not that hard, if a personal injury is involved. Let’s say you left a hatch open…


Just do a 1 year warranty inspection after they buy it and write hard. :man_shrugging:

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Talk to your insurance provider, probably not much cost difference.

I agree, the additional cost is minimal. Better coverage to make some money sounds like a no brainer to me.

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Toll bros pull this one all the time.