What is construction insurance?
Building insurance is an insurance that includes losses suffered during the construction of the building. As with other forms of insurance, this is a means of driving a risk and uncertainty in which the buyer regularly carries out the insurance, relatively small payments to the insurer in exchange for compensation in the case of unexpected and potentially much greater losses. The date of construction insurance is often used to indicate several forms of insurance, including the risk of Builder for the damage to the building itself and liability insurance for potential legal liability sources that may occur during the construction process. According to the law, construction insurance is required in many jurisdictions to legally build a building.
The risk insurance provides compensation in case of losses due to damage to the building when it is under construction. It generally covers damage from sources such as vandalism, fires and weather phenomena, such as lightning strikes by high winds. Most building insurance contracts do not cover damages caused by war actionsOr extensive natural disasters such as earthquakes and floods. Specific sources of covered damage are basically given when purchasing. Payments from the insurer in the event of damage to construction are based on the costs incurred during construction until now, not at the expected value of the completed building.
The policyholder is usually the owner of the building that was built, although in some cases the insurance is purchased by a construction supplier. The risk insurance usually ends after the building is completed. It should therefore differ from other forms of real estate insurance, such as the insurance owner or the landlord insurance that covers the damage to completed buildings. In some cases, this is possible for a part of Thprémia for paid for overturning to real estate insurance for a completed structure if construction is completed before they build the subject of risk policybuilders. The builder's risk insurance is sometimes purchased during changes or accessories for existing buildings, although in some cases losses may include existing assets for the structure during this work.
Several types of liability insurance are commonly purchased to the construction supplier and can be included in the only construction insurance. Employee's remuneration insurance provides medical and legal costs resulting from injuries or death of supplier employees during construction. Construction work is one of the most dangerous jobs in the industrial world and the remuneration insurance is often often mandatory for employers in this industry.
Professional liability insurance includes legal compensation for damages of the contrastemctor, if its client is successfully sued for professional negligence. Public liability insurance pays for damages if the supplier is sued by a third party that was damaged by the construction accident. This category may include specialized types of insurance for hazards, which are particularly common in construction, such as pollution insurance for liability due to chemical leaks.