Construction insurance is important because of two major considerations:
- First, without it, you could find yourself suddenly liable for thousands or even millions of dollars in losses. For example, what if a tornado sweeps through your construction site and damages several bulldozers (worth tens or hundreds of thousands of dollars each) and even makes a total reconstruction effort necessary?
- Second, with this insurance, you can get nearly complete coverage (there’s really never such thing as absolutely complete coverage in the insurance world) that protects you against the possible losses you might experience during a particular construction project. That way, if a tornado does come, you can rest knowing that you’ll get all your money back.
Some special options for construction cover include:
- Any special kinds of contents on the site
- Vehicles used in the construction job
- Job site offices and work trailers
- Coverage against natural disasters
- Model homes and their contents
Remember that construction coverage is very different from homeowner’s insurance. While home insurance typically costs hundreds or perhaps a few thousand dollars a year, construction plans may cost much more – even tens of thousands of dollars annually. However, you get all kinds of comprehensive insurance protection from a good construction policy that you’d never dream of with a home insurance plan. (There’s also that little tornado incentive we discussed above.)
As you search for the best construction insurer, remember to get free quotes from each company first and to compare rates before you decide to go with a particular plan. Also, inspect the contract carefully, reading all of the fine print; many conditions may apply that vary from contract to contract.