No matter what stage your construction project is in, be it planning, building or nearing completion, it is important to have and maintain adequate and appropriate insurance protection for the duration of your project. But what does adequate and appropriate insurance protection look like? It depends, and on first glance this process of your construction project may seem quite daunting. As well, other parties that may be involved in your project may have to maintain their own forms of insurance coverage to protect them and you while working on your project.
What sort of insurance are we talking about?
Common terms for insurance of a building under construction are: Builders’ Risk Insurance, Course of Construction, Construction All Risk or Contractors all Risk. This type of insurance provides protection against the loss or damage to materials, fixtures and other items integral to the structure of your project. As well, coverage may be extended to include other forms of loss such as fire, lightning, stolen materials or tools and vandalism.
Should my contractor carry this coverage instead of me?
These policies in their nature can cover a number of stakeholders and can generally be obtained by the homeowner, general contractor, engineer, architect or project manager. However the responsibility often falls on the homeowner when contracting out other parties to complete their construction project. With that being said, your contractor may be responsible for other forms of coverage such as workers compensation or contractor’s commercial general liability, and they may normally carry Course of Construction coverage due to the nature of their business. It is important to discuss this up front.
Does Pacific Homes provide guidance or offer insurance?
We do not offer insurance policies to our customers for their projects. Because we sell our product to customers in so many different jurisdictions abroad we could not begin to offer the guidance on each customer’s specific insurance needs. The best advice we can provide is to have you speak directly with your insurance broker where you currently carry homeowners insurance. Your broker will best be able to assist in determining your insurance requirements as they pertain to your project risks and the jurisdiction in which you are building. As well, they should be able to provide the best solution as it complements to your existing insurance protection.