Building or Remodeling

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Building or Remodeling
Have you planned renovations to your home? If so,
you might need to review the insurance
considerations such an undertaking might involve.
Standard homeowners policies are priced to cover
a furnished home where no construction is taking
place. If you are changing out a sink or a
toilet, or even carpet, your policy coverage
isnt unaected. But if you are doing
renovations, you need a special course of
construction policy.
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The course of Construction Insurance exists to
ensure buildings or projects under construction
against the costs of repair or replacements in
the event of an accident or a peril such as a
vandal breaking into the property. Over the years
we have seen many needs for a course of
construction insurance. As a matter of fact,
some of those insurance adjustings need to
involve ?res in such construction and
reconstruction claims. The largest claim we ever
worked on was for a very large,
multiple-building apartment complex that was
under construction. A plumber sweating a pipe
caused that ?re. In addition to ?res, we have
seen ?oods, vandalism, theft, and other
unwelcome accidents to a construction project.
The course of Construction (COC) insurance is
also known as Builders Risk Insurance. Such
insurance is designed to protect owners and
contractors from devastating impacts such as
?res. Construction ?res can happen to anyone. We
once adjusted a builders risk claim for the
owner of the Arizona Cardinals. As with most
insurance policies, insurance companies are also
considering the bottom line. In the case of the
Arizona Cardinals owner, the ?re voided all of
the guarantees and warranties on the windows.
However, because the windows looked just ?ne,
the insurers had to be presented evidence, etc.,
as to why those windows had to be paid for. We
were up to the job on that one. Further on that
huge apartment complex ?re, our work resulted in
over four million dollars more for the job that
was initially oered. We even went so far as to
claim, with success, that the builder was due
funds for opportunity costs because he had to
postpone other projects to get the apartment
complex up to its former progress point.
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Other considerations also are considered when
remodeling or renovating your home. If your
property is vacant for over thirty or sixty
days, (the time is de?ned by the policy) there is
no homeowners coverage. Often when a home is
left vacant for any length of time, anything can
happen, even squatters moving in. Original
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