In the construction business, it is very important to have a risk-management insurance policy. This type of temporary property insurance will protect the builder or contractor if an unfortunate even happens inside the house while it is under construction.
These losses include acts of nature such as:
- Fire to Property
- Wind or Lightning Damages from Storms
- Thefts and vandalism to property
In areas that are prone to flooding or damage from wind addition insurance coverage should be purchased. The policy coverage begins on the day that the material to build the home are brought to the job site.
The construction insurance policy ends when the homeowner moves into the home. Risk management insurance will protect the builder and cut their looses if something happens to a home while under construction. Coverage and policies will vary based on the value of materials and the construction project. Without this property coverage, a commercial builder or independent contractor is setting themselves up for a potential loss of profits and business.