If you ever were involved in a construction site you would know the number of problems that can arise, a situation of havoc and panic is created and you stand there dumbfounded and lost. The number of problems that can occur include, losing material for construction, some materials break, a natural disaster can hit the building you are constructing and the list goes on. However such a situation can be avoided if you have a builder’s risk insurance; you are probably wondering, what a builder’s risk insurance is? In my opinion it is something that acts as a guardian angel when you are working on a construction site. It is an insurance policy that protects not only the building you’re constructing but all the material that is required for construction, so if you lose something, there is absolutely nothing to worry about because you can easily claim it. However this does not mean that you become careless and irresponsible on the construction site, this form of insurance policy can come to rescue if some unexpected events strike your construction site.

When construction is initiated on a site, unexpected losses do occur and the blame automatically falls on the contractor and his irresponsibility and ignorance but fact of the matter is, it’s the owner’s property and it is he who should make all the necessary measures to avoid such a situation, builders risk insurance policy comes handy not only for losing material but incase if a fire takes place or a collapse caused by a strong wind; the best feature of this policy is that it covers any damage and losses that occurs even through vandalism! Sounds great right? Well, the longer you wait to adopt builder’s risk insurance policy the more risk you expose you property too. Talking about builder’s risk insurance policy I must mention some things that are not included in the policy, any loss or damage that occurs due to an earthquake, war, and flood etc. One very important thing regarding builder’s risk insurance policy is that it is only valid till the building is under construction the second it is pronounced done and ready for use the insurance policy would terminate.

It is not necessary that that only the owner has to purchase the insurance policy sometimes the construction company does purchase the policy as well but this happens in rare occasion or when it is explicitly mentioned as a condition in the building contract. Also, property owners and construction companies should review thoroughly all state and federal laws regarding the application of builder’s risk insurance; this is of utmost importance if you wish to have a smooth flow in the project operations and avoid and disruptions from the state or federal authority. Lastly, whether you are building a home or office review all insurance policies, compare their prices and coverage and then choose the one that offers the best price and covers most of the things.