5 Questions You Should Ask About Course of Construction Insurance

Course of Construction Insurance is the way savvy contractors protect their profits.  This insurance is also known as Builder’s Risk Insurance, precisely because it protects you from many of the risks that are common on a building project.  Let’s answer some questions about this insurance so you can make an informed choice about your policy.

1. Can you get a one-size-fits-all policy?

When it comes to Course of Construction Insurance, an off the shelf solution will not do.  Your project is unique.  It is built in a particular location, using specific materials, with the installation of particular fittings and fixtures.  The cost of each project is different. It makes sense that your policy should be customized for your needs.

You can include coverage for many unexpected events in the construction process like fire, theft, vandalism, loss of profit, labor costs, damage to equipment, debris removal and more.

2. Are there exclusions on your policy

Your policy may have exclusions and our agents at Builder’s Risk.net will talk you through your coverage.  Often policies for projects in a coastal area exclude wind, flooding and earthquakes.  These risks can be added to your policy, which goes back to the first point.  Tailor your policy for your needs.

3. Why is it called specialized insurance?

Course of Construction Insurance is for properties and buildings in the process of construction. It is specialized for that purpose.  It applies to buildings that are being newly built, and also to existing buildings that are undergoing renovation or restructuring. It is property coverage and it pays replacement costs for the loss of property.

4. How long is a policy valid for?

Course of Construction Insurance has a term limit.  It is for 3, 6 or 12 months.  You choose the length of your policy according to how long your construction is going to take.  Your commencement date should be when the building process starts.  Once the project is finished and the building is ready for occupancy, you need new property insurance.

5. What are the benefits of having a Builder’s Risk Policy?

There are many benefits to having a policy. Some of them include:

• Your policy pays out when a loss occurs. This means you have the funds to replace lost or damaged property and you don’t pay out of your profits. An example could when materials or equipment are stolen.

• If a significant loss occurs, for example the building is destroyed, your company will have the means of addressing it and will not face closure.

• All the participants in the project can be included in the policy.  This avoids the “blame game” when something happens.  A payout is made to the lien holder, and money can be drawn from there.

More Questions About Course of Construction Insurance? 

Speak with us at Builder’s Risk.net.  We have been operating for more than 20 years and can give you the answers you need.  Call Builder’s Risk at 877 960 0221 and make the right choice for your business.