When you are running a construction company, it is critical to protect your interests and ongoing operations in any way you can. This leads you to insurance policies that can cover financial damages in case of unforeseen events.
While there are plenty of insurance offerings available in the market, some are more critical than others for you to have in place.
Builders risk insurance is one of them.
Also known as a course of construction insurance, this particular type of insurance helps you protect your materials and interests during ongoing construction. Through its distinct features, it has become a sought after solution for many builders and property owners alike.
To learn more about this insurance policy, here are 10 must-know facts that you should know regarding the course of construction insurance.
General liability insurance covers risks such as bodily injuries or property damage. But builders insurance provides protection against buildings and materials under construction. As a result, it’s important to have this policy on top of your general insurance.
The insurance policy covers any materials on a construction site that are awaiting installation. This includes any building materials and fixtures that are part of your construction plan.
The insurance isn’t limited to materials and fixtures that remain to be installed. It also applies once they are installed on the construction site. The coverage remains in place until the construction is complete.
The insurance also provides coverage to your equipment that is used on the construction site. If any of your insured equipment is damaged during the construction process, you can recover your losses.
The insurance policy isn’t restricted to new buildings only. You can also get your materials, fixtures, and equipment insured for renovations. This provides you with the peace of mind you need during all projects.
The insurance covers multiple risks including but not limited to natural disasters, fire, explosions, and theft. This gives you maximum protection against unforeseen events. You should check in with your provider for the exact extent of coverage.
In builders risk insurance, a construction site’s main building is typically insured by default. But you can also add temporary structures such as scaffolding to the list of covered items.
The insurance policy offers coverage against residential and commercial properties alike. This ensures that your protection isn’t limited to a single type of property, and allows you to take up any kind of project with ease.
Construction insurance also provides financial protection for high value, multi-million dollar properties. These types of policies are typically offered by select providers. But they are still easy to find.
Each insurance policy is priced differently. The assessment factors include your materials, the building site, and associated risks. But in all scenarios, the policy remains reasonably priced. This is especially true when you compare the out of pocket expenses you may need to cover without insurance.
With these facts in mind, getting your own course of construction insurance seems a prudent way to conduct business as a builder. To get a precise quote for your operation, don’t hesitate to reach out to a nearby provider.