There are many types of insurance policies that you can buy for a building. If you are just renting a structure, you can have renter's insurance. This covers everything inside of the building, but it does not extend to the building itself. You can get homeowner's insurance if you buy the property, and this will protect both the house itself and the things within it. If you are having a home built, though, you may want to consider a course of construction insurance policy. If you do not know how this works, keep reading and the basics will be explained to you.
In general, this is a policy that can be put on the property while it is still under construction. It protects it while the work is going on. This would otherwise be a dangerous time for you. You cannot get homeowner's insurance because you do not yet have a home. Still, what if a fire breaks out on the worksite when the house is only a week or two from being done? You could lose hundreds of thousands of dollars. You need to be protected for the entire duration of the project.
The main things that are covered by a policy like this are also the things covered by a homeowner's policy. You will be protected if there is a fire, a flood, or an instance of theft. More obscure things like a wind storm or hail may also be covered. The most common problem in some areas is simply vandalism. There may not yet be anything to steal, so people will break things, spray paint graffiti on the walls, or cause other types of damage. This can also be covered so that you have the money to put everything back to the way that it was before.
There are also some notable exclusions, though, and you need to know what these are so that you will not think that you are covered from things for which you do not actually have a policy. If there is a war, for instance, you will not have coverage against the damage that is caused. If some sort of government action impacts the property, you will not be covered. There can also be provisions against fraud. For example, a "mysterious disappearance" is not going to be covered. This is what it is called when you claim that something was stolen but you are not able to offer up any solid proof.
Another thing that will not be covered is any problem that stems from a mistake that the builder made. For example, he may have done a poor job designing the house. When he is putting up the roof, it could collapse, destroying the roof itself and the surrounding walls. If this was just an accident, it may be covered. If the insurance provider looks at the design and decides that the roof was destined to fall no matter what because the design could not support it, you will not get money. This is why it is so important to hire a good builder. You need to work with someone that you trust. Insurance companies cannot pay for people who are not good at what they do. When you work with the best builders, you can reduce the chances that something like this will happen.
It is possible to have a home or office building constructed without any insurance. This is not required in the same way that you need to have home insurance in many places in order to get a loan. It is up to you to decide if you want to pay for it or not. Before construction begins, you can decide if you want to get a plan to make sure that there are no problems during the project. You should look into this long before starting the construction so that you have time to put the policy in place.
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Leading insurance expert Carolyne Roehm has written extensively about the insurance industry. She is currently a guest blogger for numerous insurance websites. Her most recent postings can be found at http://www.CanonInsurance.com.
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