The prosperity of a country can usually be measured by the size of its construction industry. The most prosperous cities are the usually the ones looking to expand and grow, to build outwards and upwards, and to improve on what already exists. Smart city planning involves continuously investing in bricks and mortar until everyone can reap the benefits.
There are a lot of risks associated with the construction industry which can hold some aspiring builders back, but there are many insurance policies that can negate these risks. One of them, builder’s risk insurance, is considered to be essential for any builder or property owner looking to earn their share of the property boom.
There are many different types of insurance, and several of these concern the construction industry, including property insurance. The problem is, this insurance policy only covers the building once it has been built, leaving construction companies in somewhat of a difficult situation. That’s where builder’s risk insurance comes in.
In some ways it works just like property insurance, ensuring that the structure itself is covered, but it goes deeper than that and focuses specifically on the construction process, as outlined in more detail below.
Builder’s risk insurance, like all insurance types, provides cover for many worst case scenarios. Without this cover, those scenarios could lead to major financial loss. During a construction or renovation project, this loss could be minor, such as cosmetic damage to the interior of the building, or major, such as irreparable damage to the structure.
Builder’s risk insurance provides cover for construction companies while a building is being constructed. A comprehensive builder’s risk insurance plan will cover the building itself, but will also cover the tools, machinery, and equipment used in its construction. It can also provide similar coverage during building renovation work.
Buildings that are under construction are exposed to a number of risks, many of which are the result of uncontrollable environmental factors such as high winds or floods. They may also simply fall victim to an accident.
The extent of the builder’s risk insurance policy will determine what is covered and what is not, and it will also dictate how much can be paid out and what sort of damage needs to be done before this payout. At KASE Insurance we provide some of the best builder’s risk insurance in Toronto, so if you want to discuss acquiring a policy of your own, be sure to get in touch with one of our specialists today.
Builders and contractors are often the ones purchasing builder’s risk insurance, but it can also be purchased by the owner of the building.
Typically, this type of insurance will always favour the owner of the building. They are the ones paying for its construction or renovation, they are the ones who will profit from the job being finalized, and they are also the ones who stand to lose the most if anything untoward happens. In the event that the policy needs to be cashed in, the building owner is also best positioned to be paid the money and decide what to do with it from that point on. They may, for instance, decide that the best course of action is to abandon the construction and take their funds elsewhere, while a construction company will always choose to continue the project, as it is in their best interests to do so.
Of course, there are some exceptions to this rule, such as when the builders have invested a significant amount of time, tools, and/or money in the building.
For a plethora of insurance policies that can benefit a wide range of industries, put your trust in KASE Insurance. We are a leading insurance brokerage firm based in Toronto, Canada, and we provide our extensive services and comprehensive policies to businesses of all sizes.
KASE has won multiple awards, received a wealth of industry recognition, and is one of the fastest growing insurance firms in all of Ontario. So, for the best builder’s risk insurance in Toronto, or to see what else we can offer you and your business, contact one of our experts today.
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