When construction defect or contractor negligence is not covered by property insurance that deny claims, or drop policies.
Insurance claims denied for defect with smoke detectors need no proof of over-fused wires, or improper fuses. If States adopt code, licensing, or listing requirement, the efficacy of adopted devices or law is irrelevant to voiding claims.
If missing any required licensing, product listing, smoke, or A/GFCI device, technically violates the law adopted by property-insurance policy, it won’t matter who installed it, or who passed the inspection.
Insurance only needs evidence of the violation to void policy, and property owners provide that evidence when claims are screened by phone recordings. After insurance settlement, regardless of re-building costs, any existing mortgage balance is still due regardless of property losses.
Just like a Workmans Comp. certificate of insured may avoid losing property to helper-injury claims, I believe demanding a General Liability policy avoids a total loss if it covers contractor Negligence. My GL policy does not.
If the defect or negligence is covered, the common Certificate of Additionally Insured from a current GL policy allows victims to file claims any time, regardless of contractors that disappear, go out of business, change names, and/or license numbers.