When it comes to new construction, you have to be prepared for anything. What happens to your investment if something happens before you finish the project. To prepare for losses, companies should have builders risk requirements.
Should You Invest in Builders Risk Coverage?
If you have any financial interest in a project, then you should have builders risk insurance. When it comes to insurable entities, the following may want to consider this form of coverage:
- Property owners
- General contractors
These policies cover structures that are still under construction, including all supplies, materials and equipment on-site.
What Should You Expect From Coverage?
Builders risk coverage protects against the following damage causes:
The details of your policy will depend on your insurer and basic needs.
Should You Expect Exclusions?
All insurance policies have some exclusions. When you invest in builders risk, there are some situations that your insurance will not cover. These situations may include:
There may be additional coverages, however, that can help protect your project against these risks.
When it comes to protecting your construction site, you need adequate insurance coverage. There are still a variety of risks that buildings face long before they are finished. To ensure that you have adequate protection, a builders risk policy may be necessary.