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If you are in the construction business, you will be very well aware of the risks involved in remodeling or even construction of a structure. During rainy seasons there are chances that lighting can strike on the newly installed electrical utilities. Also, there are chances of theft of materials stock in the open structure and there are also chances of wind blowing away some items that are not heavier. So, it is always better to keep yourself protected from these types of damages. How to do this? Here is the answer:
Builder's risk policy can be the best alternative for protecting builders like you from the risks associated with theft or wind or some other reasons. As many insurance companies are offering coverage under this category, there will be differences in the cost and coverage level and so before taking up such policies, it is better to consider the following points:
Who is responsible? Typically, builder's risk policy is purchased by the owner of the building. On the other hand, general contractors too purchase these insurances as a part of their contract. So, before actually entering into an agreement with any contractor for beginning the process of construction, it would be better for the landlords to inquire whether the policy comes within the services offered by the contractor. This type of coverage will be applicable when the contractor himself brings labor and other materials. Also, it is better to inquire about how much does the builders risk insurance cost?
How to select an insurance company? The owner of the property will surely have contact with an insurance company with respect to other types of insurance policies like life insurance, car insurance, etc … It is better to select the same company. This is because, the companies will be offering the policies at the best cost to their current customers. The customers are also allowed to convert to the homeowner's policy on completion of the construction process.
How much should be purchased? Generally, insurance companies will be paying for the damages caused only up to the limit covered by the policy. So, it is better to cover for a higher amount. This is because, in case a fire occurs in the construction spot, it will destroy everything and the loss will be huge to the builder. On the other hand, when you have covered for a higher amount, you can get complete refund for the damage. It should be remembered that generally, the construction materials and the structure are alone covered and the land will not be covered.
How much do builders risk insurance cost? The cost generally is determined based on the items that the building owner is planning to cover.