What is Course of Construction Insurance? – Citizens General Insurance

A construction crew finishes work on a residential building Friday afternoon. Unbeknownst to the general contractor, he left an oily rag in a bucket in the garage. the next day, the hot summer sun causes temperatures to rise and the rag bursts into flames.

the project and all materials are destroyed.

Reading: What does course of construction insurance cover

can you imagine the blow you would take if you had to do all the work again with your company’s pennies?

construction insurance course exists to insure buildings or projects under construction against the costs of repair or replacement in the event of an accident such as the one mentioned above.

The Construction Course (COC), also known as Builder’s Risk Insurance, is designed to protect owners and contractors from the devastating impact of fire, flood, vandalism, theft, and other unwanted accidents on a construction project. .

Who benefits from a construction policy course?

coc provides peace of mind to both homeowners/developers and general contractors.

Homeowners are assured that their contractors will have the funds to rebuild in the event of a loss, and contractors are assured that they will have the costs available to start over in such an event.

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Since construction course insurance covers several parts, it can be obtained by the owner, contractor, engineer, or project manager. The party responsible for obtaining COC may be specified in the construction contract itself. the owner and/or general contractor usually obtain the policy and are covered as “named insureds” who are protected against paying out-of-pocket losses.

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Subcontractors are listed on a COC policy as “no-name insureds” and receive the same coverage benefits regardless of whether the policy was purchased by an owner or a contractor.

Both named and unnamed insureds on a COC policy are protected from legal action if they happen to be the party at fault for the loss, as an insurer cannot bring action against someone covered by the same insurance policy.

Smiling Female Contractor

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If vandals break into your construction project and cause damage to property and supplies that were there, you won’t have to pay out of pocket to replace your materials.

Coc/Builder’s Risk Policy covers project property, including materials and supplies needed to complete the project.

Following damage caused by a flood or earthquake, coc will cover the expenses incurred to remove the debris from the site and any possible demolition necessary to repair the damaged areas of the structure.

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The full value of a completed project covered by the policy could also include additional labor fees for architects and engineers, the costs of additional site barricades and structures, such as temporary buildings, and even indirect costs, such as legal fees or premiums. .

risks covered by coc

construction course is a policy that really protects against unforeseen accidents. typical risks covered include:

  • fire
  • lightning
  • explosion
  • aircraft or vehicle impact
  • riots, vandalism and malicious acts
  • storm, hail and rain
  • robbery and theft
  • collapse
  • sinking
  • Perils normally excluded under this type of policy may include mechanical failure due to negligent operation; loss due to defective design, material or workmanship; use and throw away; or inherent vice: a problem or quality incidental to the property itself that causes its own loss or destruction.

    While it protects many parties from many risks, the construction insurance course is not a catch-all.

    does not cover a contractor’s tools and equipment, whether owned, rented or loaned. Some policies also exclude soft costs, that is, labor costs to redo the work.

    coc also does not cover motorized vehicles. Combining coverage for tools and equipment and business auto with your COC policy is a better way to protect your assets, as well as the construction project, from unforeseen and costly events.

    You can’t control the weather, you never know when a vandal is going to strike, and the actions of your subcontractors can always lead to a loss; That’s why contractors reduce their risks with a builder’s risk policy.

    See also: What Is an Insurance Claim and How Is It Paid? – ValuePenguin

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