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Liability Insurance Top Housing Industry Concern

Liability insurance issues remain at the top of housing industry concerns for the second consecutive year, according to NAHB’s annual Critical Issues Survey, which is conducted among the executive officers of state and local home builders associations across the country.

On a scale of one to five, with five indicating “very critical,” the cost of liability insurance was rated the top industry issue for the period of July 2002-July 2003, with an average score of 4.48.

Running a close second was the availability of liability insurance, which received a rating of 4.28. Liability insurance deductible amounts moved up to fourth place in the survey, from an eleventh place ranking in the prior year; they received an average rating of 4.12.

The development approval process was the third biggest emerging or existing concern, with a rating of 4.18, the survey found.

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Workers' compensation, development costs, impact fees/development exactions, product liability/construction defect laws, costs of lots and growth/no-growth attitudes were in the fifth to tenth places in this year's survey of critical issues.

Concerns over mold issues have eased significantly over the past year, moving down from the fourth most to the eleventh most critical housing issue.

With unemployment rising, concerns over labor issues have dropped out of the top 10 most critical issue list this year; a shortage of skilled labor was the leading concern of builders from 1998-2001, the survey showed.

To review more detailed survey results, NAHB members can click here.

Association members can receive the complete Critical Issues Survey results by e-mailing Marie Zenner or calling her at 800-368-5242 x8279.

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