Builders Risk/Cost of Construction Insurance
When you are planning to build that new custom home or looking to do a major remodeling project that includes adding additional square feet to your current home, there is an enormous amount of planning that goes into those projects, from drawings to permits to finding the right, properly insured Phoenix, AZ contractor to handle the project. In addition to these items, one more important piece of planning should be to acquire an Arizona Builder’s Risk Insurance Policy, which is also known as Cost of Construction Insurance.
Builder’s Risk Insurance/Cost of Construction insurance is a unique type of property insurance coverage which guards against damage to structures while they are under construction. By obtaining an Arizona Builder’s Risk Insurance Policy, you are protecting an organization’s or an individual’s insurable interest in the structure, fixtures, and/or equipment, and materials that may be used in the construction or renovation of a structure or a building in the event that they suffer a physical loss or damage from one of the covered causes of loss contained in the policy. If you are building a new custom home or doing a remodel/room addition, most times your homeowner’s insurance policy will not cover a loss should an accident happen while you are building or remodeling your home. That is why it is very important that you secure this type of insurance coverage before you start the project.
There is nothing worse than finding out there is no coverage after a serious fire, theft, vandalism, or some other development that could cost you thousands of dollars out of your pocket. Before the project starts, make sure that either the owner or contractor obtains an Arizona Builder’s Risk Insurance Policy as well as their Scottsdale Commercial General Liability Insurance so there are no surprises.