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How Does Course of Construction Protect Remodeling Contractors?

You are halfway through completion on a renovation to a residential home. Gale force winds send giant trees crashing down, torrential rains flood the area, and hail strikes the earth with the force of a hammer. In the morning, the damage is done. Your remodel has experienced extensive damage and your materials left on site are ruined.

Worst-case scenario, a situation like this one will cost you.

You will have to pay your employees to clear debris from the site, and to repair damage done by the wind, hail, and water. Once you have cleaned up the mess, you will need to replace the raw materials that were damaged. The profit margin for this project dwindles further and further as you repair and replace.

One unforeseen storm, unexpected and out of season, has caused this project to be a complete loss for you.

You can’t walk away.

You have a contract and performance bond that assures you will complete it.

Now imagine a happier scenario:

The morning after the storm, as you stand in the midst of the damage in ankle deep water surveying the ruins of your project, you pick up the phone.

Dialing your insurance company, you call in a claim.

The damage is covered under your Course of Construction policy. The costs of clearing debris, replacing materials, and getting back on track with your project will not come from your pocket.

You calmly explain to the homeowners that, despite being a bit behind schedule, the project will continue to move towards completion. The claim is processed quickly and you get back to work on your project.

For remodeling contractors, course of construction insurance can save the day.

When remodels and renovations are your specialty, you know that anything can and will go wrong. Vandalism, theft, natural disasters, and accidents that happen to your project while you are working on it can either ruin your chance of profitability on your remodel, or they can be a small bump in the road.

Course of Construction (also known as Builders Risk) policies reduce your financial risk in one of these unforeseen circumstances.

Builders Risk protects you from worst-case scenarios such as:

  • Fire
  • Wind
  • Burglary and Theft
  • Lightning
  • Hail
  • Explosion
  • Vandalism
  • Flood
  • Earthquake

What about materials not stored at the project location? Builders Risk will cover your materials when they are in transit or even in storage at a different location. You are protected in the case there is a fire at your storage facility, or if materials are stolen on their way to the site.

Watch out though!

While materials are covered under a builders risk or course of construction policy, your tools and equipment are not. Check out our page on tools and equipment insurance (inland marine) to find out how you can protect the tools of your trade.

Your coverage also extends to your client’s existing structure, and not just their new addition or renovation. When you bid on the job, you can offer your client the peace of mind that, should something unexpected occur that causes damage, their house is protected by your plan during the construction phase.

Beginning a remodel project without Course of Construction coverage is putting your project and profitability at risk.

You can manage this risk by protecting your profits and your business from the worst-case scenarios by carrying Builders Risk.

Smiling Female Contractor



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