A remodeling contractor lands a job building a new house, or a few townhomes. The work looks like what they already do, just bigger. But many contractor GL programs, admitted and surplus alike, exclude new residential construction, and many also exclude condominiums, townhomes and tract housing.
The reason is construction defect claims. New homes, and especially multi-unit projects, can produce claims years after completion from many owners at once. Carriers that write remodeling and repair work often don't want that exposure.
The short version
Before a contractor takes a new-build job, check whether the GL excludes new residential construction. If it does, completed operations claims from that house may never be covered.