Many homeowners these days are choosing to remodel their homes rather than build a new one. Very often a remodel can make a world of difference. Businesses are no different, and if a company is particularly profitable, remodeling might be a necessary step to allow for expansion. However, precautions must be taken before starting any construction project. Working with a knowledgeable insurance agency like Aegis Insurance Markets is a must to make sure your property is properly insured during construction.
What is Course of Construction Insurance?
Course of construction insurance is a special type of property insurance, which indemnifies against damage to buildings while they are under construction. Course of construction, also known as Builders Risk insurance, is coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause. Usually, lenders will require course of construction insurance before issuing construction financing. They will generally require this coverage before funding remodeling projects as well.
A common example when this type of coverage is needed is when a business breaks ground on a vacant lot. In this scenario, a company owner might not yet have a definitive insurance policy that includes the new property.
The coverage is typically designed for the period that a location is undergoing physical changes, and will generally end once the remodeling is finished.
It’s not just your materials and supplies that are invested into a project. If you need to start from scratch, clean up damage, or replace stolen investments, it could cost you. Course of construction offers a very special safety net against the risks that you face while you are working on a project, protecting you against losses that could really cause a setback.
Get Course of Construction Insurance Today
Aegis Insurance Markets specializes in finding contractor insurance solutions to meet your individual needs. We currently offer course of construction insurance for contractors, home builders, and owner builders. Call us today at (800) 579-636 for a quote to insure your project against the perils it faces during the course of construction.