Business insurance can be quite complicated, especially when it comes to businesses that offer building or construction services. One type of insurance that is extremely beneficial to builders in the Kansas City area is builders risk coverage. In some cases, municipalities make having this type of insurance coverage a prerequisite to getting the right permits to begin a construction project. This is why a property owner or contractor should speak with a Builders Risk Insurance Service Provider in Kansas City KS.
Builders risk insurance is coverage that can protect a property while it is being constructed or renovated. This insurance coverage can compensate a property owner or a construction company for the loss of the structure that is being worked on, the materials used to construct or renovate the structure and other equipment. This lost may be due to a fire, a weather event or it could be because of vandalism or theft. Most builders risk insurance won’t cover things like flooding or earthquakes. However, in areas that are prone to these sorts of weather or natural related events, getting riders attached to a builders risk policy can be beneficial in the event a construction or renovation projects is damaged by one of these incidents.
A question that is often asked and perhaps one that could be answered by a builders risk insurance service provider in Kansas City, KS is who should purchase the coverage. Most people would think that the contractor doing the construction or renovation work should hold the policy. However, for greater control, most experts feel that the property owner should carry the builders risk insurance. This means that if an incident happens, the property owner will receive the compensation. From there, they can dole out the compensation to the construction company to pay for any construction or renovation setbacks. If the construction company is compensated, they could easily abscond with the money, which has happened in the past. The owner having the insurance offers more control for the property that is being worked on.
Many of these issues can be somewhat complicated, which is why expert advice is essential. If you’re planning a construction or renovation project and you need to have builders risk insurance, you may want to Contact us to learn more about this policy and to find out some of your purchase options.
