Spring marks the return of bluebonnets and green grass to Texas. It also signals the time when construction projects are again underway after the winter months. Spring is also storm season, which means that having the right builders insurance in place is important, before bad weather hits. Construction insurance protects building projects while they are in progress, so even if a bad storm hits, construction companies and project owners are protected against any storm damage.
Construction Insurance Protects Building Projects
After investing in the construction of a new building, the last thing any property owner wants is a financial loss due to damage on their unfinished project. The construction companies doing the work also have an investment in terms of time, labor, building supplies, and more. Damage to unfinished building projects is costly, which is why having the right builders insurance can help. When a building that is still under construction is damaged, this damage and other associated losses is covered by the construction insurance policy.
Storm Damage to Construction Projects
Every year storms, fires, and other catastrophes in Texas cause billions of dollars in damage to buildings and homes, many of which are still under construction. Wind and thunderstorm damage alone caused $30 billion in damage to commercial buildings in 2011. In an area that is prone to severe spring weather, the need for adequate construction insurance is obvious, as the possibility of being affected by a spring storm is greater than in other areas. Even though the actual likelihood of a construction project suffering from devastating storm damage is small, the possibility still exists, especially in certain parts of Texas. If this damage is not covered by adequate builders insurance, it could severely delay projects or cause them to fail if the financial loss is great enough.
Builders Insurance Coverage Terms
A builders insurance policy is usually purchased by the construction company or sometimes by the property owner or financier, to protect their investment while the building project is underway. Coverage should begin when building supplies arrive at the building site. This coverage expires once the building is complete and then covered by regular business insurance. Construction insurance policies are usually issued in three, six, and twelve month terms, although extensions are available when projects require more time to complete. An “all risk” policy will cover against damage caused by extreme weather or any other peril, unless that peril is specifically excluded in the policy. Texas policies may not include flood damage, and most exclude damage caused by earthquakes; these and other exclusions can often be added to a policy as a rider.
Considering the frequency of spring storms in Texas, builders insurance should be considered an essential part of every construction project. Construction companies looking for the best protection for themselves and their clients, must purchase the appropriate builders insurance policy at the beginning of each project. Should the worst happen, construction insurance will cover damage sustained due to wind, rain, and other storm-related causes, enabling the project to be completed on time!
Need Builders Insurance In College Station TX?
Service Insurance Group Offers Builders Insurance Coverage!
Call One Of The Numbers Listed Below:
College Station - (979) 431-5015
Texarkana - (903) 202-0865