Building a new house or office building is a lengthy job and the exposed structures can fall victim to Mother Nature’s worst weather. In fact, property losses caused by wind, storms, fire and other weather events exceed $70 billion each year. Luckily, the property owner can protect uncompleted projects with builders risk insurance, also known as course of construction insurance. This type of policy is designed to cover buildings under construction, along with construction materials and equipment at the worksite.
What exactly does builders risk insurance cover?
· Property damage: Protects construction materials, equipment and heavy machinery, fencing, scaffolding, temporary structures, signs, landscaping, etc.
· Natural and man-made disasters: Protects against fire, severe storms, hail, black outs, broken water mains, etc.
· Labor expenses: Replaces labor expenses and income.
· Theft: Some policies include protection against theft of construction materials, which may require a gated worksite.
· Miscellaneous damages: Flawed construction materials and/or design, subpar workmanship, etc.
This policy might be a smart consideration if you have a lot of money invested in a construction project, if the construction materials are prone to damage and/or if the property is located in an area at a higher risk of inclement weather. This coverage typically lasts for three, six or twelve months, and can usually be extended at least once if the project is not yet completed. You’ll need to purchase coverage for 100 percent of the anticipated construction budget, which generally costs from one to three percent of that total budget.
Your independent agent can help you customize a policy to meet the unique needs of your construction project, offering quotes from a variety of insurers to provide you with the right type and amount of coverage.
Protect the investment you made in your new building project. Call Northside Insurance Agency at 813-960-5225 for more information on Tampa commercial insurance.