If you are planning to renovate your company’s building, take a look at your business property insurance first. A builders risk insurance policy might be a wise addition to your coverage portfolio.
Though the name suggests that coverage is bought by the builder itself, that isn’t necessarily the case. A builders risk insurance policy can be purchased by a building owner or the contractor, depending on who wishes to control the funds if a claim occurs. The terms of the contract depend heavily on current property coverage already in place for the existing building; two policies can’t cover the same structure in the same way.
It is important to get this coverage tailored specifically to your needs when you undertake a renovation, since you will want protection for not only the new materials and structural improvements but also the existing structure during the course of the project. You will also want your investment in the construction covered so, for example, if a windstorm destroys the work two thirds of the way through, you and the contractor don’t lose the value of the work already done and the materials already used.
There are many additions you can make to a basic builders risk policy, and that may be a crucial move if it is a large-scale project involving cranes or other expensive systems. The key is to protect your investment in both the existing property and the expansion during the entire course of the project.
