You should seriously consider getting course of construction insurance for any commercial, residential or even industrial projects that you are planning or currently conducting. Get the highest levels of coverage that you can afford, because this is an indispensable form of insurance!
Course of construction insurance basically entails extra coverage beyond that normally offered to homeowners. This is because basic insurance for homeowners doesn’t cover construction costs. So, the extra coverage can cover you against any bodily injuries or property damages that may occur in your construction efforts. Construction can sometimes be dangerous, as you know, so you should really look around for the best insurance rates and take the company that offers cheap yet comprehensive cover. Sometimes the general contractor pays the premiums; it just depends on the terms of the course of construction contract that you negotiate.
Some factors influencing the premium levels include:- Location and relative safety of the construction site
- Square footage of the building
- Number of structures on the site
- Whether or not the construction site is within 1000 feet of tidal waters (which could flood)
- Is the project a remodeling or a new construction?
Choose your insurer carefully. Generally, course of construction insurers can set their own coverage options and rates without much state regulation. So just be aware of all the conditions of the contract that you sign. Of course, a benefit is that this type of coverage applies to any and all property at the construction site as well as to equipment kept in storage offsite. It even covers materials while they are being transported! If you’ve ever learned about construction equipment, you know how many thousands of dollars huge pieces of equipment can cost.
Other coverage options for construction insurance may include:
- Coverage for job site vehicles, trailers and offices
- Construction site contents
- Model homes and their contents
- Inventory of construction vehicles
- Protection against natural disasters such as earthquakes
- Builder’s risk insurance