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Accrued Expenses and Other Liabilities
 3 Months Ended
Mar. 31, 2019
Payables and Accruals [Abstract]  
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following:
 
March 31,
 
December 31,
 
2019
 
2018
 
(Dollars in thousands)
 Warranty accrual(1)
$
6,945

 
$
6,898

 Accrued compensation and benefits
4,021

 
5,749

 Accrued interest
12,543

 
6,497

 Completion reserve
2,152

 
4,192

 Lease liability(2)
3,196

 
—

 Other accrued expenses
4,475

 
5,692

 
$
33,332

 
$
29,028


 
 
 
 
 

(1)
Included in the amount at March 31, 2019 and December 31, 2018 is approximately $0.9 million of additional warranty liabilities estimated to be recovered by our insurance policies.
(2)
In conjunction with the adoption of ASC 842 the Company established a $3.5 million lease liability on January 1, 2019. For more information, please refer to Note 1 and Note 11.


Changes in our warranty accrual are detailed in the table set forth below:
 
Three Months Ended March 31,
 
2019
 
2018
 
(Dollars in thousands)
Beginning warranty accrual for homebuilding projects
$
6,681

 
$
6,634

Warranty provision for homebuilding projects
427

 
516

Warranty payments for homebuilding projects
(341
)
 
(375
)
Ending warranty accrual for homebuilding projects
6,767

 
6,775

 
 
 
 
Beginning warranty accrual for fee building projects
217

 
225

Warranty provision for fee building projects
9

 
—

Warranty efforts for fee building projects
(48
)
 
(2
)
Ending warranty accrual for fee building projects
178

 
223

Total ending warranty accrual
$
6,945

 
$
6,998



We maintain general liability insurance designed to protect us against a portion of our risk of loss from construction-related warranty and construction defect claims. Our warranty accrual and related estimated insurance recoveries are based on historical claim and expense data, and expected recoveries from insurance carriers are recorded based on actual insurance claims and amounts determined using our warranty accrual estimates, our insurance policy coverage limits for the applicable policy years and historical recovery rates. Because of the inherent uncertainty and variability in these assumptions, our actual insurance recoveries could differ significantly from amounts currently estimated.