Builder’s Risk Insurance: A Look into Construction Coverage
There are many risks in the construction business that are impossible to mitigate, but insurance during construction is not one of them. The only insurance risk that surfaces during construction is not getting the policy placed. Builder’s Risk Insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction. Builder’s Risk Insurance is coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause. The policy begins when construction starts and ends with completion of the project and receipt of the Certificate of Occupancy.
The cost of the coverage depends on the type of coverage you request. Coverages can compensate for the full value of the project or limited losses. Delayed completion times, loss of revenue and natural disasters can also be added to the coverage, if desired.
We require all policies to include “in-transit”, which would cover a $90,000 cooling tower while it is on the road. These coverages help protect those with a vested interest in the project, including the owner and subcontractor. The procurement of a Builder’s Risk Policy is a service we provide to all our Owners. We place great importance on this service and it is front and center during our compass kick-off meetings.
We are currently researching a builder’s risk wrap up policy to protect us on even the smallest service project with the goal of insuring all projects, in a most cost effective manner.
If we have a claim, we assist the owner during the claims process with our expertise and detailed field records. The next time a new HVAC roof top unit is damaged by a freak hailstorm, know that you’re in good hands with EDiS!!