Property construction or renovation is costly. If any damage occurs to the structure, equipment and materials you are likely to incur huge losses. So how do you minimize the risk of financial loss? Your Builder’s Risk Insurance covers structures under renovation or construction. Furthermore, it is also important to know that Builder’s Risk Insurance does not cover general liability.
Most Builder’s Risk policies provide cover for losses due to:
Builder’s Risk Policy extensions are the additional benefits included in your Builder’s Risk insurance policy. In this article we take a look at six crucial Builder’s Risk policy extensions.
Construction accidents leave a lot of debris in their wake. Thus, the clean-up process may require special equipment and a lot of labor. This may cost your company thousands of dollars. Builder’s Risk policy extensions include clean-up costs up to the amount specified in your policy.
Incidents of fire or chemical spillage may result in the release of pollutants. Furthermore, your policy extension can cover the clean-up costs of adjacent land or water bodies.
Building codes may change while you are in the middle of a long-term construction project. Moreover, new construction regulations or green initiatives may delay your project due to implementation.
In some cases, your investments in equipment and construction materials are rendered obsolete. This may result in losses. The good news is, your Builder’s Risk policy extension will reimburse a percentage of the profits lost due to these changes.
A construction site accident takes your project back a few steps. Thus, you lose on progress, while materials and equipment get damaged. Furthermore, it will cost you to make replacements and get back on track. Contractors with Builder’s Risk insurance receive a percentage of the profits earned before damage occurred.
This is one of the most important covers provided. For instance, if construction project is ravaged by fire, you will be reimbursed an amount equal to the value of lost property.
Your insurance agent will consider your initial investment. Hence, it is therefore important to have an accurate valuation report of the project.
Materials and equipment belonging to the construction project may be stored in a different location. If they get damaged or stolen you will need to replace them.
Builder’s Risk Policy extensions will cover damage or loss that occurs during storage or transportation.
If blueprints, schematics and electronic data are damaged or lost, your Builder’s Risk insurance will cover the cost of replacement papers and data recovery.
Not every construction business has the same needs. It is important to select a cover with the best Builder’s Risk policy extensions to protect your business. We are experts in this area and can help you choose the best policy extensions for your business. To get in touch with Builder’s Risk on 887 960 0221 and get the right policy for you.