The idea of having a new home constructed is exciting, but it does involve making sure the contractor carries a reasonable amount of Construction Insurance. This type of insurance coverage goes into effect the day it is secured and remains so for some time after the home is finished. Here are some of the provisions that need to be included in the insurance policy.
Problems During Construction
Just about any construction project will run into some sort of problem. Perhaps the work on a section of the home does not meet local standards for some reason. This will mean that the contractor will have to tear down that part of the structure and rebuild it. The Construction Insurance will help to offset the cost of having to bring the work up to code and ensure the house will pass inspection.
The process of building the home can also be set back if some of the building materials turn up missing. Before the work can get back on schedule, it is necessary to order more materials to replace everything that disappeared overnight. Rather than absorbing the cost of replacing those materials, the contractor can file a claim with the insurance provider and be reimbursed for the expense.
Taking Care of Issues After the Construction is Complete
Most policies of this type will remain in effect for up to a year after the home is finished. If the owner should find that the foundation begins to fail, or some other covered event comes to pass, it is possible to file a claim and get the funds needed to make the repairs. The money from the claim will make it possible to do whatever is necessary to make the structure sound and safe for habitation.
This type of coverage from the Perdue Insurance Group provides protection for the contractor and the client. With the right mix of benefits, it is possible to recover from any type of setback during the construction and deal with any issues that may arise in the months afterward. For the cost of the premium, the contractor can rest assured that if something does turn out to not be quite right, making the necessary changes will not result in financial hardship.