Driveway Inland Marine Insurance: Equipment and Materials

What Driveway Inland Marine Insurance Actually Covers

Most homeowners assume a contractor’s general liability policy protects every part of a driveway project. The truth: once tools, pavers, seal-coat tanks, or bags of cement leave the contractor’s shop, they are considered “in transit” or “at the job site,” and a standard policy may not pay if they are stolen, dropped in a creek, or ruined by rain. Driveway Inland Marine Insurance fills that gap by covering equipment and materials from the moment they are loaded until the job is finished and you’ve signed off.

For you, the homeowner, this means fewer change-orders, no surprise bills for replacement concrete, and a project that stays on schedule even if a pallet of pavers disappears overnight. Below you’ll learn how to verify coverage, what questions to ask before work starts, and how this specialty policy can save you thousands in out-of-pocket costs.

Why Homeowners Should Care About Equipment & Materials Coverage

1. Stolen or Damaged Materials Can Stall Your Project for Weeks

A $4,000 bundle of Belgian block edging can vanish from your curb in minutes. If the contractor is uninsured, he may ask you to front the replacement cost or delay work while he scrambles for cash. Inland marine insurance pays the replacement value within days, so your driveway crew is back on site—without dipping into your pocket.

2. You Could Inherit Hidden Costs Without Realizing It

Standard builder’s risk policies often exclude “contractor’s equipment” or limit coverage to $2,500—barely enough for a plate compactor. If the contractor’s skid-steer punches through your sewer line while moving stone, the repair bill can top $10k. Inland marine coverage can be endorsed to include property in your care, sparing you a homeowner’s claim and a deductible.

3. Lenders & HOAs Are Starting to Require Proof

Financing a $30k paver driveway through a home-equity loan? Your bank may ask for a certificate showing inland marine coverage. Likewise, upscale HOAs often list it as a precondition for approval. Knowing the lingo—and what to look for on the certificate—prevents last-minute panic.

What Driveway Inland Marine Insurance Covers (and What It Doesn’t)

Covered Property

• Pavers, bricks, stamped-concrete mats, and sealcoat products while stored on site
• Rental equipment such as plate compactors, concrete saws, and mixers
• Contractor-owned machinery: skid-steers, dump trailers, laser screeds
• Custom-order items (color-matched concrete, imported stone) in transit from supplier
• Portable tools: generators, tampers, diamond-grinders, even cordless battery packs

Common Exclusions

• Wear and tear or mechanical breakdown (e.g., a seized compactor engine)
• Intentional loss or conversion (theft by the contractor’s own staff)
• Property once it is installed (after the mortar sets, coverage switches to your homeowner policy)
• Earthquake or flood unless specifically endorsed (critical in coastal or low-lying areas)

Red-Flags: How to Spot an Under-Insured Driveway Contractor

Certificate Says “Tools & Equipment—$5,000 Limit”

That won’t replace a $12k laser screed. Ask for at least $50k in inland marine limits for a standard residential driveway; $100k if heavy equipment is involved.

Policy Is in the Owner’s Personal Name, Not the LLC

Personal policies exclude commercial work. Make sure the named insured matches the company on your contract.

Effective Date Doesn’t Cover Your Job Window

Some contractors buy coverage for one week to grab a certificate, then let it lapse. Require a certificate dated no earlier than seven days before work starts and valid through your completion date.

No “Installation Floater” Endorsement

Without it, materials become your responsibility the instant they touch your soil. Insist on an installation floater that covers property “until accepted by the purchaser.”

Typical Costs & Who Pays

How Much Does the Coverage Cost the Contractor?

Most driveway pros pay $500–$1,200 per year for a $50k inland marine policy. High-end installers with $250k of owned equipment may spend $2,500. The premium is tax-deductible for them, so there’s little reason to go bare.

Will It Increase My Quote?

Reputable contractors already bake the cost into overhead. If you receive two bids and one is 3% higher but includes verifiable inland marine coverage, the peace of mind is worth the extra $150 on a $5,000 job.

Can I Buy It Myself?

Yes, through a “rider” on your homeowner policy, but it’s expensive and usually duplicates what the pro should carry. A smarter move: require the contractor to list you as an additional insured on their inland marine policy for the project duration—cost to you: $0.

Homeowner Checklist: 7 Steps Before the First Shovel Hits the Ground

1. Get the ACORD 25 certificate: Look for the island “Inland Marine” line and verify limits.
2. Confirm the installation floater: Ask for policy wording page showing “property of others in your care.”
3. Match the VIN & serial numbers: On large jobs, request a schedule of insured equipment to be used.
4. Verify deductible: A $5,000 deductible passed on to you can sting; negotiate who pays it in the contract.
5. Take “day-one” photos: Document existing sidewalks, sprinklers, and neighbor property—speeds any claim.
6. Require overnight security: If materials sit for days, a locked box truck or onsite camera lowers premiums.
7. Get it in writing: Add a clause: “Contractor bears full risk of loss for materials until homeowner acceptance.”

What Happens If Something Goes Wrong? A Real-World Walk-Through

Scenario: $8,000 of Porcelain Pavers Stolen Friday Night

Step 1 – Notify: Contractor calls his agent within 24h and files a police report.

Step 2 – Document: You email your photos showing pallets on site at 5 p.m. and empty pallets at 8 a.m.

Step 3 – Adjust: Insurer sends an adjuster Monday; replacement quote approved Wednesday.

Step 4 – Replace: New pavers arrive Thursday; job finishes one week late instead of months.

Your role: Cooperate, but pay nothing—the deductible is the contractor’s responsibility.

FAQ: Driveway Inland Marine Insurance