Anyone working in the construction industry knows that projects are subject to a slew of different risks during the construction process. Weather, fire, vandalism and theft may all contribute to costly delays, along with any number of other concerns. A builder’s risk policy indemnifies against many of these types of losses, and all a contractor needs to know is how to find the best construction insurance in new jersey.
Construction insurance purchased by New Jersey contractors indemnifies them against damages during projects under construction and also protects any insurable interest in tools, materials, fixtures and equipment being used in the construction or renovation should any items sustain physical loss or damage from a covered cause.
A builder’s risk policy provides valuable coverage
The contractor working for the property owner should purchase this coverage as it protects the interests of the insured. Builder’s risk coverage may also be necessary in many cases to show proof of insurance and in order to comply with local city, county and state building codes. This is often required as a condition to many contracts entered into.
Liability coverage, on the other hand, will cover most project accidents resulting in bodily injury and damage to property other than the structure being built. While it’s possible to cover damage to construction projects under an owner’s existing property policy, there are coverage limitations in standard property insurance forms that make procurement of a builder’s risk policy a desirable option in many cases.
If procured, consideration should be given as to whether the owner or the contractor obtains it. This determination is best made on a project-by-project basis, taking into consideration such factors as the type of project, the type of contract (cost plus or stipulated sum), financing/lender’s requirements (some owners may want to bundle soft cost and loss of income coverage with the policy to avoid claim delays and arguments among insurers over coverage), location of project, and the owner’s desire to participate in project-specific risk management.
If you are interested in learning how to find the best construction insurance in new jersey contact a local agent with any questions or concerns.