Course of Construction Insurance in Utah
Course of Construction Insurance is designed for owners, developers, contractors, and lenders during construction projects. The risks involved can be very different from those faced by an ordinary household or general business, especially when work in progress, building materials, theft, fire, weather, vandalism, and delays following a covered loss are part of the exposure.
Coverage can be tailored to the individual situation. Direct Insurance Servicescan help clients in Utah compare available options from multiple insurance companies and review differences in coverage, limits, deductibles, and eligibility.
Why Consider Course of Construction Insurance?
Course of construction insurance is another term commonly used for builders risk insurance. It is intended to protect eligible property while a building is being constructed or substantially renovated, before a permanent property policy takes over.
Insurance can help transfer some of these financial risks, but no policy covers every situation. The appropriate combination of coverage depends on the specific details of the risk and the insurance companies willing to consider it.
Course of Construction Insurance Coverage Options
The coverage that may be appropriate varies by client. Depending on the situation, an insurance program may include several different policies or endorsements.
Structure Under Construction
Coverage may apply to the building or structure while construction is underway, subject to the policy’s valuation method, limits, and covered causes of loss.
Building Materials
Materials and supplies intended to become a permanent part of the project may be covered while at the site and, in some policies, while in transit or temporary storage.
Temporary Structures
Scaffolding, temporary structures, fencing, or other project property may be covered depending on the form.
Soft Costs and Delay Expenses
Optional coverage may be available for certain additional expenses caused by a covered delay in project completion.
Course of Construction Insurance FAQs
Is course of construction insurance the same as builders risk?
The terms are commonly used for the same general type of property coverage protecting a building while it is under construction or major renovation.
Who should purchase course of construction coverage?
The owner, general contractor, developer, or another party may arrange coverage depending on the construction contract and who has the property exposure.
Does it cover materials before they are installed?
It may cover building materials at the site and, when endorsed, in transit or temporary storage. Limits and locations should be confirmed.
Does coverage continue after the building is occupied?
Occupancy can trigger termination or restrictions under some policies. Permanent property coverage should be arranged before occupancy or completion.