The Blame Game In Construction. Can Building Insurance Help? - Farmer Brown Insurance Agency - Contractor Talk

The Blame Game In Construction. Can Building Insurance Help?

 
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Old 05-28-2020, 06:54 AM   #1
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The Blame Game In Construction. Can Building Insurance Help?


The Blame Game In Construction. Can Building Insurance Help?

Building insurance could put an end to the Blame Game on your projects. You know how it goes. Something goes wrong. Maybe there is theft on site and tools and materials are stolen. Work is being delayed and everyone starts to point fingers. The site should have been secured; the tools should have been locked away; there is no time contingency in the plan; accusations are thrown about.

What happens now?

If the project has Builder’s Risk insurance, this conflict can be avoided. The tools and materials can be replaced without impacting anyone’s profits; the work can continue; the project owner may even be able to claim for future rental loss due to completion delays.

Let’s look at which constructions projects can get building insurance. Should you even be buying a policy?

Can your project be covered by Builder’s Risk insurance?

This building insurance applies to certain types of construction work. You can get Builder’s Risk Insurance if your project is any of these:
  1. Construction of a new building or structure.
  2. Remodeling or renovation of an existing building.
  3. Fitting of fixtures such as solar panels, plumbing or electrical fittings.
  4. Restructuring of a building such as reinforcing foundations or removing a load bearing wall.
Builder’s Risk is also known as Course of Construction Insurance. It has a term limit with a commencement date and an end date. A policy is usually 3, 6 or 12 months long. With a new building it can start with groundbreaking and ends when the building is complete and is ready for occupancy.

Who should buy a Builder’s Risk policy?

This building insurance is tailored for a particular project and business. The policy can give coverage to the project as whole, and a number of parties can be included as named insured.

All those with a financial interest (who will be paid for their work in the project) can be included. This could be the owner of the project, the contractor, sub-contractors, lenders, and even professionals like architects and engineers.

An experienced insurance provider like Farmer Brown Insurance will write up the policy to properly include all the parties to be covered.

Who are the funds paid to when a claim is made?

After a loss event, the funds will typically be paid to the project lien holder or mortgage company. In the example above with the theft of tools and materials, the money could be paid to the project owner and then the money would be drawn from there to replace them. There is no need for accusations and blaming, the work can continue.

What coverage is provided by a Builder’s Risk Policy?

This building insurance is property coverage. It should be tailored to a specific project. As such there is no standard policy, but there are events that are commonly included in many policies. These include fire, theft, vandalism, and damage from weather events like hail and wind.

Where to get your building insurance

Speak with our agents at Farmer Brown Insurance. We have the expert knowledge and experience to tailor your policy so your project is properly protected from a loss event. Call Farmer Brown Insurance on (888) 973-0016 and avoid the blame game when things go wrong.
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