Builder's Risk Insurance protects a construction project as well as all the tools, equipment, and supplies left on the job site. Today, we’re going to make it simple with five facts that will perfectly explain Builder's Risk.
Builder's Risk insurance is a type of construction insurance that protects active projects. This insurance will cover tools, equipment, and supplies left on the job site during an active construction project. other than builders risk, it can also be referred to as course of construction insurance. It's ideal to have during a construction project as it offers protection in case of natural disaster, vandalism, or theft. While it can sound complicated it's really quite simple. Today we’re going to work to make that simplicity even simpler.
1. Know What Parties Are Covered
As the general contractor you will need to obtain the builders risk coverage. However, aside from yourself the insurance policy will also cover all insurable interests. These are people that have a stake in the project. For example, owners, developers, banks, investors, and subcontractors. The coverage that builder’s risk provides is good because it created an environment free from finger-pointing.
2. Understand What’s Covered
Once your insurance policy is active, you can expect any actions that thieves, vandals, arsonists take won’t leave you out to dry. In addition, your site will be protected from all weather phenomenon and natural disasters too. Course of construction coverage is there to make sure that your project can get back on track without extra cost.
3. Remember What Is Not Covered
Though much is covered under Builder's risk insurance, not everything is. As a specialized kind of property insurance, nothing that happens after the project is finished will be covered. The goal of course of construction insurance is to keep the active project save. If something changes the nature of the project, then a new type of insurance will be needed.
4. Know the Policy Length
When you decide what policy to buy, you’ll want to keep in mind the estimated completion time for the project. In general, you will be able to get a policy for six, nine, or twelve months. In addition, you will be able to extend your coverage should the construction project take longer than expected.
5. Track Exclusions
Course of Construction covers almost all of the things that you could think of as that’s the point. However, you should look at your specific insurance policy to see what is excluded in your case. Each policy will be unique and will have certain exclusions based on the situation and location.
Builder's Risk Insurance is not always required though it is always advisable. If you are looking to obtain Builder’s Risk, then take a look at our site today!