Contractors operating in the Garden State know that new construction of office buildings, high-rises, local shopping centers and sprawling resorts within this industry must be supported by a residential construction insurance policy in New Jersey. Banks and other lenders would never take the risk of making loans for a construction project without insurance in place to protect their own interest. After all, there are general contractors along with a wide range of artisans, from landscapers and carpenters to electricians, plumbers, masons, all working on projects in order to get them completed on time and adhering to their client’s budget. This equates to a lot of possibilities that something may go wrong.
A builder’s risk policy helps to protect your interests
As a contractor, you also have a lot at stake, including your equipment, tools and any materials used in the undertaking of a construction project. There are so many risks involved in working a job site, many of which are often hazardous. Your exposures can obviously vary from one construction project to the next, and throughout each process as well. Having a builders risk policy helps to alleviate these types of concerns.
There are decisions and choices that you’ll need to make as to which available coverage options might best suit your needs, many of which need to be made before construction (or a loan) is approved. The construction lenders, as well as the developer and builder, need to do a lot of due diligence regarding all of the builders risk policies terms and conditions.
There is always the looming concern that you may experience costly construction delays, or possible increases in cost due to a covered loss under the builder’s risk policy. An example of this would be a delay in opening, which may turn out to be substantial to the client, but coverage must be added to a builders risk form in order to be covered.
Any questions or concerns that you have about some of the unwritten limitations in an all risk policy should be discussed with your broker. Speak to a qualified agent who can address your questions and concerns about Clifton construction insurance.