I've come across the term "construction insurance" at a real estate blog. May I know what it's all about?
Total Comments: 7
Posted: Mon May 10, 2010 02:57 pm Post Subject:
That could mean just about anything as I've never heard the term applied to one type of policy and I don't know the context. If I were to guess, I'd say it's a Builders Risk policy. But that is a wild guess.
Posted: Tue May 11, 2010 12:41 pm Post Subject:
Hi, it's indeed what tcope has mentioned - builders risk insurance. It's meant to cover your expenses while you're raising your home. The materials that are procured to construct the structure as well as the structure itself are covered under it.
Posted: Tue May 11, 2010 04:26 pm Post Subject:
Expenses to build is not really covered... builders risk insurance addresses "risk" that the builder has in not completing the work... such as theft of supplies. I think this is what Steven meant.
Posted: Wed May 12, 2010 08:49 am Post Subject:
If you are hiring a general contractor to do construction, he may carry such coverage to protect his loss of tools and materials from the job site.
If you are considering this as an owner-builder, you may discover that the cost is not worth the expense. I did an extensive remodel of my home two years ago, and a BR policy was quoted to me at a cost of almost $3,000. I figured it was money I could devote to the project instead of the insurer's profits. Fortunately, there were no losses on the job site. But I did buy a $1,000,000 umbrella liability policy for about $250 just in case a worker did some damage to someone else's property, or got hurt on the job site (all of the subcontractors I hired had their own workers' comp, but you never know).
Posted: Wed May 12, 2010 11:27 am Post Subject:
I believe it covers the structure and it's materials for damages caused by strong winds, fire etc.
Remember that the insurance agency might wish to take a look at the home building contract. So, they might ask for a copy of it prior to the policy issue.
Posted: Thu May 13, 2010 05:29 pm Post Subject:
If altering an existing structure, a homeowner's policy may provide protection for everything except the tools and equipment of third party contractors on the job site, or damages due to the property owner's own negligence.
Posted: Fri May 14, 2010 07:32 am Post Subject:
It's true that the structure's implied worth would not be covered under Construction insurance. It will only cover the expenses till the damage occurred.
Posted: Mon May 10, 2010 02:57 pm Post Subject:
That could mean just about anything as I've never heard the term applied to one type of policy and I don't know the context. If I were to guess, I'd say it's a Builders Risk policy. But that is a wild guess.
Posted: Tue May 11, 2010 12:41 pm Post Subject:
Hi, it's indeed what tcope has mentioned - builders risk insurance. It's meant to cover your expenses while you're raising your home. The materials that are procured to construct the structure as well as the structure itself are covered under it.
Posted: Tue May 11, 2010 04:26 pm Post Subject:
Expenses to build is not really covered... builders risk insurance addresses "risk" that the builder has in not completing the work... such as theft of supplies. I think this is what Steven meant.
Posted: Wed May 12, 2010 08:49 am Post Subject:
If you are hiring a general contractor to do construction, he may carry such coverage to protect his loss of tools and materials from the job site.
If you are considering this as an owner-builder, you may discover that the cost is not worth the expense. I did an extensive remodel of my home two years ago, and a BR policy was quoted to me at a cost of almost $3,000. I figured it was money I could devote to the project instead of the insurer's profits. Fortunately, there were no losses on the job site. But I did buy a $1,000,000 umbrella liability policy for about $250 just in case a worker did some damage to someone else's property, or got hurt on the job site (all of the subcontractors I hired had their own workers' comp, but you never know).
Posted: Wed May 12, 2010 11:27 am Post Subject:
I believe it covers the structure and it's materials for damages caused by strong winds, fire etc.
Remember that the insurance agency might wish to take a look at the home building contract. So, they might ask for a copy of it prior to the policy issue.
Posted: Thu May 13, 2010 05:29 pm Post Subject:
If altering an existing structure, a homeowner's policy may provide protection for everything except the tools and equipment of third party contractors on the job site, or damages due to the property owner's own negligence.
Posted: Fri May 14, 2010 07:32 am Post Subject:
It's true that the structure's implied worth would not be covered under Construction insurance. It will only cover the expenses till the damage occurred.
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