Builders Warranty Insurance Coverages

A builders warranty insurance policy is used to insure a building while it is being constructed or under construction for the purposes of remodeling or reconstruction. The contractor for the job will often purchase a policy to cover the property as well as his materials and supplies. It is the contractor’s responsibility to ensure that the insurance policy contains the most basic and significant of provisions.[br]

A builders warranty insurance policy is used to insure a building while it is being constructed or under construction for the purposes of remodeling or reconstruction. The contractor for the job will often purchase a policy to cover the property as well as his materials and supplies. It is the contractor’s responsibility to ensure that the insurance policy contains the most basic and significant of provisions.[br]

The contractor needs to find out if the policy covers all of his building materials and supplies, not just while he is at the site working but also when he is travelling back and forth to the site. The same can also be said for when his supplies are in storage. It is essential to find a builders warranty insurance plan that will cover all materials both while they are installed and uninstalled.

What else needs to be verified before a policy can be purchased? A contractor must find out if foundations are insured by the policy, as well as temporary structures and excavation sites. It is also significant that all equipment, fences and scaffolding are covered while being transported and also while at the work site. This is the case whether the items mentioned here are owned by the contractor or were leased by him. It is essential that these things are not excluded from any policy that you purchase. If they are then it is you who will be held financially responsible for any lease payments that need to be made on equipment that gets damaged or destroyed.[br]

Verify that the builders warranty insurance covers a number of different types of weather related events such as fires, floods and earthquakes (some policies cover earthquakes while others do not). It is also essential that the policy covers sinkholes and theft. Take a look over the policy as thoroughly as possible to make sure that it takes water damage and sewage damage into consideration. It will also be a tremendous help to you if the policy contains a broad all-risk provision that insures against perils that are otherwise unlisted.

Before signing on the dotted line confirm all costs associated with everything from faulty workmanship to design error to interruptions in business to changes in the law. There are certain soft costs that a builder or contractor may wish to be covered for if the project becomes delayed or does not finish at the allotted time.