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Sunday, 23 March 2014

What Does a Builder's Risk Insurance Policy Cover?



Are you a contractor in the construction industry? Are you covered under a construction insurance policy? If you are not, then we encourage you to visit SHARP INSURANCE and request a free quote today.

As a building owner, it is your responsibility to ensure that your building is properly covered under an insurance policy. The best way to do so is to apply for a builder's risk insurance policy. The latter is a kind of property insurance that is often referred as a "course of construction" policy since it covers the building for a period of time ranging from 3 to 12 months (or until the building is done).

Since most builder's risk policies will cover numerous stakeholders, the building owner is generally the person in charge of acquiring one (unless specified otherwise). It is not uncommon, however, for building owners to put the general contractor, architect or even the project manager in charge of obtaining proper coverage.

So what exactly does this policy cover? Quite simply, it pays for any damage that is incurred (up to the policy's limit, of course) while the building is covered under the policy. Such damage include: Fire, vandalism, explosion, theft and a number of other natural disasters. Depending on what you are looking for, this policy can cover either the structure only or the materials as well.

It is important to note, however, that this policy (like any other) does not cover every single possibility. As an example, most policies do not cover earthquakes. Fortunately, you can obtain additional coverage through endorsements. Before deciding on which one you might need, we recommend that you talk to your insurance agent. For more information visit: http://sharpinsurance.ca

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