What does course of construction insurance cover? A guide by Besso

Course of Construction insurance is designed to offer protection for buildings which are currently under construction. Besso http://www.192.com/atoz/business/london-ec3n/insurance-companies-and-agents/besso-ltd/e58ac6ab67591bdd4c0774385e31ed17cd4d6b71/ml/ experts say that this type of policy will typically cover the value of the structure which is being built, up until the point at which it is either ready for occupancy, or has been moved into. It will also usually include the value of the materials used on the building site, and the materials which are in transit to the site for the construction work. Some policies might also include coverage of the entire structure, and this form of insurance can also be used to provide cover for specific projects, such as the remodelling of a kitchen, or the addition of a new room in a house.

Course of Construction policies are a type of Inland Marine insurance. Some of the key elements included in this coverage include vandalism, theft, hail, lightning, storms and accidental fires. There are certain course of construction policies which may provide a limited amount of coverage for structural collapses which occur during construction.

Whilst a typical insurance form will list the events which the policy will cover, many insurers offer course of construction policies on an all-risk basis, which essentially means that all losses are covered, except for the named exclusions on the policy. Besso says that it is possible in some circumstances to pay an additional fee for certain exclusions to be covered. Standard exclusions with this type of insurance policy usually include mechanical breakdown, government action, weather damage occurring to property which is left outside, water damage, loss which occurs without evidence, employee theft or earthquakes.

According to Besso, testing coverage will be included in some course of construction policies. Certain components of a building under construction will need to be tested in order to make sure that they work - air conditioning and heating systems, for instance, will need to be checked before the building becomes occupied. If these systems malfunction, they could cause an explosion or a fire - in cases such as this, testing coverage included in this type of policy would provide financial protection when contractors suffer a loss through no fault of their own.