Course of Construction: Protecting Your Project While It’s in Progress

A new construction project is a daunting endeavor. Whether you’re a first time home builder, an established general contractor, or a large commercial developer, the decision to tackle a large scale project is a huge risk. There are so many things to think about regarding permits, budgets, materials, construction timelines, payroll, etc… and the list goes on.

The last thing you want is something happening to the project before it’s complete. What if your materials are stolen? What if (heaven forbid) a fire breaks out and ruins the new framing that was just completed? That’s where a course of construction policy can protect your investment.

What is a Course of Construction Policy?

A course of construction policy, also known as a builders risk policy, is given away in the name: it protects your project while it’s in the course of construction. From the first moment you start to lay the foundation, to the interior finish work wrapping up the project, this insurance has your back for those worst case scenarios.

What Does a Course of Construction Policy Actually Cover?

This type of policy ensures that you won’t have to come out of pocket to replace those materials that are to become a part of the finished home or commercial building. This includes foundation materials, rough lumber, finishing trim, and everything in between. Coverage is also extended to material in storage waiting to be put to use and material in transit.

Do These Policies Only Cover New Construction Projects?

While most policies are written to cover new construction, builders risk can also be written to cover existing projects and/or residential and commercial additions. Coverage can even be extended to the existing structure so if something happens in the new section and spreads to the existing section, you’re covered.

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