Insurance For Owner Builders: Things To Know
If you are constructing or renovating a residential building at your land then CONGRATULATION! You are an owner-builder.But is it so easy to hold the title? No! You need to be extra careful regarding many concern, more info can be found and owner builders will surely relate.
As owner builders for building schedule and any liability associated with the project. This means that all responsibility is on you. Higher the responsibility, the greater the risk.
Getting insurance is an easy way out. Three types of owner builders insurance should be considered for coverage:
- Construction Insurance
- Public Liability Insurance
- Builders Warranty Insurance
Construction Insurance:
Being an owner builder at your own property then you must be carrying some heavy machinery for sure. For construction processes, it’s a must. Regarding this very reason, construction insurance might come handy.
The equipment you are handling can get damaged, broken or even stolen.
While construction insurance will cover the equipment and materials present at your building project or site. Also covering vandalism and theft.
Public Liability Insurance:
As anowner-builder, you also need to take care of the public.
If the public suffers any injury or property damage due to your project. The blame is on you! And the claim could get extra expensive. Whereas, public liability insurance covers third party property damage and injury caused by your end.
Following losses are covered with public liability insurance:
- Expense and cost of your legal defence
- Compensation and damages resulting from third party property damage and injury
- The legal cost and expense of the claimant that ran successfully against you
- public liability for physical damage or destruction of equipment or goods of your control (on the basis on property damage assurance)
Builders Warranty Insurance
The builder’s warranty insurance is the most important yet compulsory insurance.
If a contract builder is hired then, the homeowner will get the coverage for six-years against financial losses in case the builder fails to rectify or compensate defects.
The period of cover is from the acquiring date of permit to next six-years. And, two years for non-structural defects.
In The End:
These three insurances are an easy way to burden down your risk factor.
However, for any building case builders warranty insurance is a must.It’s better to secure in present and be ready for the future.
