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Protect Your Construction with Builders Risk Insurance NY

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There are some steps that you cannot complete without having insurance. To complete the typical construction project, you need insurance in case something goes wrong. Builders risk coverage is designed to protect a contractor, lender or anyone who is involved in the building construction.

Why Does This Type of Insurance Exist?

Whether you work in the construction industry or not, you know that buildings are at risk. You know that man made and natural disasters are constant threats to the integrity of buildings. Manmade threats include fires, thefts and vandalism. Natural threats include all types of natural disasters from floods to tornadoes.

You need builders risk insurance NY to protect your property while it is being constructed. The coverage begins after the start of the construction and before the end date. Some amount of construction must take place for the coverage to become valid. Overall, this policy typically lasts for a few months up to a year.

Builders risk insurance is not designed to provide liability coverage, which is contained in a separate policy. You cannot use the policy to protect yourself from being sued by someone who becomes injured on your property.

The insurance does not cover all natural disasters, such as floods and landslides. There is no guaranteed coverage for all man made disasters like thefts and acts of war.

The Extent of Coverage

The company and specific type of policy you choose determines the cost and amount of coverage. This coverage should include the estimated value of the property and labor costs to make the building.

Each insurance company has different requirements to obtain a policy and receive a payout. For all companies, builders risk insurance NY is not made to provide more coverage than property insurance.

It is possible to request additional coverage. The perils can include floods, earthquakes and loss of property. Coverage that includes poor workmanship and irresponsible behavior is typically excluded.

Using builders risk insurance NY is an ideal way to protect your construction project. You have to remember that the coverage starts and ends with the actual construction, even if you have not met the terms. Reviewing the terms to choose the right policy is necessary. To learn more about builders risk insurance NY plans, contact nycoastalhomeinsurance.com.