If you are working in the construction industry, then it is crucial that you do invest in insurance for your property development. This will protect you from financial issues that could cripple a project and ultimately your business. There are a variety of issues that you can face with property insurance so let’s look at how to solve these the right way. First, it’s important that you understand what property development insurance is and how it can help you.
Property Development Insurance Explained
This provides the cover you need for any construction work that you might be completing. Contractors may have their own insurance set up; however, this probably won’t provide coverage for any issues involving you as their employer. Furthermore, it’s possible that contractors may not even have insurance, or they won’t have a set up that provides the comprehensive solution that you want. That’s why your first step as a property developer should be getting your own.
The costs covered here include any damage or loss on private property, public liability and the liability for any damage caused to surrounding buildings by work on your property. An example could be a wall collapsing and damaging vehicles on the street.
Not Enough Coverage
One of the most common issues for developers seeking out this type of insurance is not getting the right level needed. There are multiple areas to think about when building your insurance package. What you get will depend on the project in question as well as your requirements.
For instance, you should definitely make sure that you have public liability. That will cover anyone entering the site and this includes individuals that should never have been there. Building damage ensures that you’re covered if the work causes damage to buildings or harm to individuals through general accidents. You may also want to consider defective titles. If deeds get lost or damaged when they are being passed to new owners, it will bring a project to a complete halt. With this insurance, you are completely covered in the event of this type of shut down.
Lack of Information
You will need certain information from your contractor to get the coverage required. Make sure that you discuss with your contractor the type of coverage they already have as this will help you understand what you need to set up yourself. Information you need to gain coverage includes financial estimates for the next year and details of claims over the last five years. You will also need to provide information on the project itself, including the total value of the plant and any existing insurance that is already in place on this particular project.
We hope this helps you understand some of the issues that you can face with property development insurance and how to handle them the right way. Remember, you cannot trust contractors to set up the full insurance coverage you need. You should always ensure you get your own insurance package to protect your project and your business.
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