Everything You Need to Know about Owner builder insurance before Getting into one

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owner builder

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Many accidents happen on a construction site which cannot be anticipated. For such situations, owner builder construction insurance becomes vital to protect builders from any lawsuits or unnecessary hassles. This insurance provides peace of mind to a builder, as it will cover all the hefty charges along with the progressive value of the building. It is not odd to believe that you have many doubts and questions regarding such an insurance and so we bring to you all the information which you must keep in mind while shopping around for an owner builder insurance.

Is this insurance required?One of the major questions that must be popping in your head would be whether you actually need such an insurance or not. Many companies or financial institutions, who are willing to help you with the funds, will be pleased to see that you hold such an insurance for emergencies. It might be one of the most crucial conditions on which they are willing to lend you funds, after all, you will not be willing to risk your investment and that of others by leaving it to fate. This insurance provides you benefits which are payable upto a certain amount. It is your biggest support in chaos and emergency which makes it your best weapon.

What does it cover for you?An owner builder insurance is way more than what it seems as it plays different roles and covers the features of other insurances as well. This insurance gives you the benefit of public liability insurance, which protects you against any mis-fortunate incident. During construction, the property becomes prone to mis-happenings for which a third party doing business with you could sue you and your company could be under immense danger and owner builder insurance helps with the funds to be used for dealing with any lawsuits.

You will also be getting the benefits of construction insurances which ensure your construction project from the very start till its completion. You will be protected against damage, theft, fire, water damage and other such atrocities.

What to consider for choosing the right policy?Now, that you are sure that you want to purchase insurance, there are many considerations to bring under your notice before you make the final decisions. Read on to know more.

  1. For how long is the policy covering your estate and is the time period open for extension if the project takes more time in completion than expected?
  2. In case of any claim or lawsuit, will the insurance funds cover the total amount to be paid and also the professional’s fee? Will it cover the demolition and rebuilding costs in such an event or will it cost extra?
  3. Is it possible to obtain insurance cover after the commencement of the work on the project?

With a direct approach it can be well understood that owner builder construction insurance plays very important role not only in protecting the project, but also in providing peace of mind to the builder. You must also opt for an insurance which covers tools and equipment and workers compensations. Your insurance is your guard against troubles so make sure that you have a strong one by your side. Relevant information should always be spread like wildfire as you never know why might be benefitted with it. Share this post with your friends who might be wondering why as an owner builder, they must have insurance. Also, we would like to know about your thought on this post, so do leave a comment.