Course of Construction
The course of Construction Insurance Policy protects property owners, developers, and contractors while they developed under-construction buildings. Moreover, considering the time and money you invested in the projects, it is a very significant decision to acquire a Course of Construction Insurance. Furthermore, all stakeholders who are part of the project are under protection in case there’s a loss.
This insurance is very vital because other policies exclude coverage when the property is under renovation, under-construction, and in some cases, for a specified period afterward. Additionally, the risk of damage to property while a building is under-construction is a significant concern for property owners. As a result, damage can lead to severe, unexpected costs that can delay or completely stop the construction process.
Benefits of Course of Construction Policy
- Peace of mind for owners and contractors.
- Sufficient funds to rebuild the under-construction building if it’s damaged by fire or other disasters.
- Whether if the owner or the contractor who made the policy, regardless of who’s at fault, they protect both parties against the loss.
What does it cover?
- Supplies and materials to use in constructing the building
- Additional site structures like barricades, temporary buildings, and other built structures intend for the project.
- Common risks like fire, explosion, windstorm, theft, collapse, etc.
- The cost to rebuild.
- Labour requires to rebuild.
- The Actual cash value of the damaged building.
- Earthquakes and Flood can be cover by CoC (Optional).
- Sewer backup
- Valuable papers and records.
- Professional fees.
What does it not cover?
- Mechanical Breakdowns caused by negligence.
- The workmanship that will cause the building to be destroyed.
- Tools and equipment used by contractors are not covered.
- Vehicles on work sites.
The course of Construction- Who can buy it?
Property owners mainly purchase the course of construction policy. However, contractors, project managers, or even engineers can also acquire insurance. Hence, this is because the Course of Construction policy provides coverage to different parties who are part of the construction projects, not just the owner. Additionally, if your contractor expects you to carry the cost of Course of Construction policy, you should ensure the coverage is enough for the project scope and that this cost reflects well in your contractor’s actual job estimate.