If you are in the business of new construction, renovations, or remodels of existing structures, you need to make sure you have adequate insurance protection during the process. You may think your Alabama commercial property insurance provides the right type of coverage, but are you sure? You need to know that there are exclusions, limitations, and provisions that may apply to certain situations. If you have a vested interest in a new construction job, renovation or remodel, you may need to consider purchasing a Builder’s Risk policy.
What is a Builder’s Risk Policy?
Imagine being hired as the contractor for a new construction project for a commercial building. You are six months in and made significant progress. That night your project becomes the target for vandals who damaged all the building materials and stole much of the equipment used for this new construction. Of course, this will result in a delay of the projected completion date and will create additional costs (“soft” costs). Without the right coverage protection, you may be faced with limitations on coverage, or exclusions.
The solution is to purchase a Builder’s Risk policy that is designed to cover property exposures (on an all-risk basis) from the beginning of construction, renovation, or remodel and ending when the job is complete, and the structure is ready for use. It includes protection for building materials, equipment being used for the project, along with the existing structure that sustains physical damage from a covered peril(s), up to the coverage limit, which would be the estimated completed value of the construction.
Below are Covered Perils Pertaining to Builder’s Risk Insurance:
- Theft or Vandalism
- Explosions or Fire
- Vehicle or Aircraft Accidents
- Lightning Strikes
- Damaging Winds or Hail
If a covered peril occurs that results in damages and delays to the projected completion date, this type of insurance protection can provide protection for “soft costs” which may include additional fees from architects or other skilled laborers, overtime, and additional advertising costs, not to mention lost sales.
Contact Us at Burkett & Associates Today
If you are planning a new construction job, renovation, or remodel, it is essential you contact us immediately to discuss whether Builder’s Risk insurance is right for you. We are here for all your Alabama home and commercial insurance needs and our mission is to provide the right type of insurance protection you need and deserve, at a price you can afford. Don’t wait! Call us today at 256-704-7400.