The complexities of liabilities associated with construction projects add confusion to the processes of securing insurance for a job. The advisors at https://www.sboneinsurance.com recommend that you know the difference between builder’s risk vs property insurance in order to give your project the best protection. Having a builder’s risk policy can be the difference between a successful risk management approach or a devastating loss.
The nature of property insurance is somewhat limited in light of the construction activities that might be occurring. The scope of property damage is limited to incidents of theft, fire, and weather damage to existing structures and items belonging to the property owners. A construction site presents new elements that would need coverage.
When construction is occurring, there is an assortment of equipment, materials, and vehicles that belong to contractors and subcontractors on the property. A builder’s risk policy covers the loss associated with damage to these items in the event of vandalism, theft, fire, or weather damage. It also covers the unfinished project or structure with the plan being in effect from the date the work begins to the day when work has been completed and the property is available for use.
The details of coverage for each policy are unique to what the property owner, contractor, or bank requires. Additional endorsements and inclusions can be tailored to meet specific risks such as weather vulnerabilities in areas that may be prone to flooding or wind damage.