While the contractor usually purchases APPC for the project owner, both may be insured under the policy for covered injury or damage.  APPC solves the problem of competing claims from a contractor’s policy and typically low limits of insurance held by homeowners.  However, the project owner is the “primary insured” under the policy to make sure that, in the event of competing claims from both the project owner and the contractor, the project owner’s claims are preferentially dealt with in terms of the limits of insurance available.