Taking out an insurance policy for a building while it is under construction is very important. With all the recorded cases of buildings collapsing and building materials being stolen while on-site or while being driven to the site, it all makes sense that it is important to have some form of insurance coverage. This insurance is vital for both the contractor, who could also be the builder, and the owner of the building. It matters less whether you are building from scratch, renovating or just adding a portion to your building. Regardless, you must take a builder’s risk insurance, just to be on the safe side. Here are a few pointers on why this form of insurance is important.
Cover You Against Fire and Explosions
A construction site is a hazardous site, considering the materials builders use for construction. Fires and explosions are likely occurrences at such sites. Fires can consume the entire building together with the materials on site. Having risk insurance gives you the confidence that incase of such an occurrence, your investment will not just get lost, but you will receive compensation based on your insurance cover.
Cover Against Vandalism and Theft
Vandalism and theft are two misfortunes that you will not evade as a prospective building owner. Construction sites are in most cases exposed to the public from where bad elements might be lured to steal some building materials. Often, you will find cases of steel doors and windows as well as other building appliances getting lost. In most cases, these things are even stolen by the hired hands during construction. Building materials can also get stolen while in transit. Much as you will try and take effective measures to employ security personnel, it is also vital that you have a cover for these items to minimize your losses.
Another issue to consider is the personal safety of everyone involved in the construction process. Accidents do happen at construction sites that might lead to serious injuries, and some can be fatal. You must take a form of insurance to protect those involved in the construction. In case one gets injured, they can receive treatment, and even be compensated if it is debilitating injury. This cover saves you as a builder the headache of having to stop your business and cater to that injured person.
Damages on Machines and Vehicles
Most people focus too much on the building and forget about the machines they use for construction. These are expensive machines like vehicles, cranes and other specialized building equipment depending on the nature of the building under construction. These items can get stolen or damaged in the course of the construction process. You must take the relevant cover for them to have them replaced as quickly as possible in case of any losses or damages. Some of these machines are so important that they can stall an entire project leading to losses if not replaced or repaired on time. Having a cover for such ensures that such mishaps never occur.