Whether your plans are to build a new, spacious, custom home, or to remodel your current home, or to do a room addition, a commercial building, or multi-family units, there is a vast array of planning that goes into these types of projects from architectural designs, permits being pulled, to finding an experienced, appropriately insured General Contractor and qualified sub-contractors to make sure the project is done correctly. Another important part of your planning when starting out on these projects is to acquire a California Builder’s Risk Insurance Policy, which is also known as Cost of Construction Insurance.
CA Builder’s Risk Insurance/Cost of Construction insurance is a specific type of OC property/inland marine insurance coverage which guards against damage to structures while they are under construction. When you acquire a California Builder’s Risk Insurance Policy, you are protecting an individual’s or a company’s insurable interest in the structure, equipment and/or fixtures, and the materials that may be used in the course of a new custom home construction, remodeling of an existing structure or a commercial building in the event that they suffer damage or a physical loss from one of the covered causes of loss contained in the Builder’s Risk Policy. If your plans involve building a new home or renovating your current home, there is a very high chance that your current homeowner’s policy will not cover any losses should an accident occur while you are remodeling your home or building a new one. This is why it is imperative that you purchase this specific type of insurance coverage before the project starts.