NSP FAQ
Q

What kinds of insurance are considered eligible NSP costs for grantees/subrecipients/developers/contractors?

Date Published: October 2012

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A

The following types of insurance are considered eligible costs for NSP grantees, subrecipients, developers and contractors:

  • Construction Insurance - During redevelopment, insurance for construction is considered part of the development cost and is reimbursable by NSP for the grantee, subrecipient, and developer.
  • Builder’s Risk Insurance - Contractors who are required to obtain builders risk insurance in relation to an NSP covered contract are responsible to pay any deductibles associated with a builders risk insurance policy. The cost of these fees is part of the overall contract price agreed to by the property owner and the contractor. The NSP program would not be responsible for the payment of this deductible.
  • General Liability Insurance - General liability insurance is part of the normal cost of doing business and is an overhead cost that can only be covered by the developer fee.
  • Property Insurance - Appropriate levels of property insurance are an eligible NSP expense and may be included in the total development cost. The cost of this insurance must be reasonable when compared with insuring similar properties, for similar purposes, in the market.

Tags: NSP Program Requirements - Eligible Costs

FAQ ID:

649