In the Tristate area, restoring an existing property or erecting a new building is a highly detailed project that can often take several months to accomplish. During this process contractors working towards their goal of the completion of the project may find themselves exposed to the risk of damage to the unfinished structure due to any number of concerns, including vandalism, inclement weather, or other forces of nature.
Each year, a number of property losses caused by fire, storms, and other catastrophic events ends up costing tens of billions of dollars in needed repairs. For this reason alone, property owners should make sure to purchase Builders Risk Insurance (also known as course of construction insurance) to protect their incomplete projects. This particular type of insurance is designed specifically to protect buildings throughout the course of construction, as well as any raw construction and building materials, along with any equipment that is on the property.
Basic types of risks that are covered by Builders Risk Insurance
While not every incident is covered by builders risk, there are a number of issues that this insurance will provide compensation for, including:
- Natural and man-made disasters, which includes damage from severe storms, hail, fire, black outs, broken water mains, etcetera
- Property damage includes damage to construction materials, fencing, scaffolding, equipment and heavy machinery, temporary structures, landscaping, signs, etcetera
- Any lost labor expenses and income which will be replaced, and
- Miscellaneous damages, such as flawed construction materials, inadequate design, poor craftsmanship, etcetera
Most policies include coverage for theft from the construction site, (this may require a gated worksite in order to obtain this particular coverage). Builders Risk Insurance is an important and vital consideration if the construction materials in use are prone to damage, or if the construction site is located in an area considered being a high risk of either bad weather or theft.
This coverage can often be extended at least one time if the project remains incomplete at the end of the coverage period. An agent can assist you to customize a policy to meet the unique coverage needs of your project by offering quotes from numerous trusted insurance carriers that can provide you with the right coverage for the right price.