By now, most of the nation is aware of the raging inferno that engulfed an entire apartment complex in Los Angeles in early December. The residential project was under construction, and the fire melted computers and cubicles in neighboring buildings, in addition to causing horrendous damage to the construction itself and rendering the project destroyed.
While a fire of this magnitude is not necessarily common, it is clearly possible for outside forces to damage a building that is under construction. Destruction may come from vandalism, arson, or even a heavy storm. For the construction company that was working on the project, this could be a financially devastating occurrence.
So what happens when good construction goes bad, like it did in the L.A. case? This is what Builders Risk insurance is for; this coverage financially protects the structure being erected while it is under construction. In addition, a New Jersey Builders Risk policy can cover materials stored on site for future installation, those being transported to the site for use, and even destruction of structures and materials by fire, vandalism, or theft.
Builders risk insurance is an absolutely necessary coverage for any type of construction firm or contractor. Especially true in New Jersey, weather can be unpredictable. Construction firm owners are often surprised by the costs of not only repairing the damaged construction, but ensuring the structure is safe after damage is done, and rebuilding.
Builders risk insurance also goes by the name of “course of construction” insurance, and some policies could even include damage from lightning, hail, explosion, water damage, and mechanical breakdown. For more information about policy specifics, please contact Tri-State Insurance Agency and speak to a knowledgeable insurance representative at (888) 990-0526.