Course of construction insurance ensures you do not lose money due to unforeseen circumstances during the construction or renovation of a commercial or residential structure. Sometimes called builders risk, this policy takes over where general liability stops. Here are some of the losses usually included, as well as a list of those not covered.
What Is Covered
Course of construction insurance covers general damage to a partially constructed building due to vandalism, fire, or accident. It also covers the cost of debris removal and other expenses associated with cleanup. Protected items include the following:
- Tools and other equipment
- Building materials and supplies
What Is Not Covered
While course of construction policies cover a wide range of losses, there are a few situations that require separate policies. Fortunately, the list of exceptions is short and only includes events such as the following:
- Nuclear hazards
- Catastrophic weather events not explicitly mentioned in the policy
- Civil or international war
- Seizure of land or building materials by a government agency
- Personal injury
- Damage to landscaping, antennas, and equipment trailers
When budgeting for a project, insurance is something on which you should not skimp. The added premium for course of construction insurance is minimal compared to the cost of potential catastrophes that could occur while building.