Simple enough, Builder’s Risk Insurance is designed to protect active construction projects as well as the tools, equipment, and supplies left on the job site. Today we’re going to go into five facts that will make understanding Builder’s Risk even simpler.
Builder’s Risk Insurance is designed to protect active construction projects as well as the tools, equipment, and supplies left on the job site. Also called Course of Construction Insurance, Builder’s Risk offers protection in the case of natural disaster, theft, or vandalism. It can sound complicated, but it’s quite simple. It protects your active job site. Today we’re going to go into five facts that will make understanding Builder’s Risk even simpler.
1. Who is Covered?
In general, the general contractor will obtain builders risk coverage. However, they are not the only ones that are covered in the policy. The insurance policy will also cover all insurable interests. Examples of this include owners, developers, banks, investors, and subcontractors. This coverage creates a safe work environment where finger-pointing doesn’t occur should something happen on site since all parties are covered.
2. What is Covered?
With all the safety measures one can take on-site, you can never guarantee safety. With Builder’s Risk, you don’t have to worry. Once the insurance coverage is active, thieves, vandals, arsonists, weather phenomenon, and natural disaster will no longer be a concern. Course of construction coverage will have your project back on track without the worry of excess expenses. This is because equipment, materials, and even supplies on the job site will be covered if they are damaged or go missing.
3. What Isn’t Covered?
While it might seem like a lot is covered under Builder’s risk insurance, not everything is. Builder’s Risk is a specialized form of property insurance and as such, doesn’t cover anything after construction is finished. Its goal is to make sure that the construction project stays protected while being actively worked on. In addition, Course of construction insurance isn’t for small buildings in need of repair. It’s designed to protect large jobs on commercial or residential building sites whether renovation or new construction.
4. How Long Does It Last?
Your Builders risk insurance covers a project during while it is actively under construction and only under construction. If you are no longer building or someone moves in, the coverage ends. The general policy lengths are six, nine, and twelve months. In addition, you have the option to extend your coverage should the project take longer than expected. However, you should always purchase the policy using the realistic time that it will take you to finish the project.
5. What Exclusions Are Important to Know?
Most of the time, a course of construction policy is an “all-risk” policies. That means unless something has been specifically outlined in your policy, most accidental damages that could occur on your job site will be covered. That said, you should work to have a thorough understanding of your coverages and also your specific exclusions. Each policy is different, and you need to know what to expect should the worst occur on the job site. How about checking ontario cottage insurance quotes, its amazing!
Builder’s Risk Insurance is required in many contracts. However, even if it is not, it’s something that you should think about to stay protected and to make sure your job will stay on track no matter what.