3 Types of Damage Covered by Builder's Risk Insurance
Construction insurance providers in NJ and NY are a must-have in your contact list if you’re renovating a building or constructing it from scratch. After all, they can sell you what’s called builder’s risk insurance; it’s what will protect you from dangers that may be lurking on site. This type of Commercial Insurance in NJ and NY is rather comprehensive in nature, since it shields you both from the external factors such as natural disasters and internal ones (like one of your contractors making a mistake).
Do know that certain insurance companies will offer you different types of coverage and you may be asked to pay extra if you want more of it. With that being said, this is what you can expect from your builder’s insurance policy in terms of coverage:
- Theft and vandalism
Since a construction site tends to be an open area, it’s inviting to vandals and thieves. Do you have a tendency to leave expensive tools and equipment there overnight? Don’t be surprised if it all disappears before you get to return in the morning.
Worse yet, if the construction site is located in an area marked by high crime rates, the risk of theft and vandalism essentially skyrockets. With builder’s insurance, however, all of the equipment, tools, and valuables are recorded and their value reimbursed if worse comes to worst.
- Natural disasters
Commercial insurance companies in NJ and NY will advise you to always note your environment. If there’s a high risk of natural disasters like wildfires, earthquakes, floods, windstorms, hurricanes or similar, it’s not a wise idea to test your luck – just get the proper kind of insurance instead. Do note, however, that your geographical location may be a factor in determining your premium.
In the end, you should never subject the fate of the entire project to sheer luck. Imagine almost completing a building’s foundation, only to see it being destroyed by a flood. Since you’ve likely invested quite a bit of your resources and work at this point, this would be an absolute disaster. Thanks to builder’s insurance, you’re covered entirely, which means being compensated for both the materials used as well as the man hours put into it.
- Vehicles and aircraft
This tends to be one of the most overlooked aspects of builder’s risk insurance, but an important part nonetheless. In other words, both vehicles and aircrafts pose a risk to your construction project and you must factor it into your overall equation.
What this means is that, as a contractor without a suitable insurance policy, you’re open to the risk of a vehicle or plane crashing right into the building you’re working on. In fact, if it’s located near an airfield, the possibility of something similar happening is not that unlikely. With builder’s insurance, however, you can expect to have your equipment costs, the labor that went into it, and the cleaning costs all reimbursed.
Conclusion
As you can see, builder’s insurance allows you to go about your work worry-free. In the end, you want to finish the project while minimizing the risks involved, so make sure to get in touch with your local construction insurance provider in NJ and NY today.