Many things can happen when you are in the process of constructing a house. You need to make sure that before you start the process of building, you have gotten reliable and comprehensive insurance to avoid losing your investment before it materialises. Most people have a hard time making claims from their builder's risk insurance premiums because they do not read the terms and conditions to gain a proper understanding of what is typically covered and what is not part of the coverage. Getting a clear understanding of what will be included helps you efficiently plan for any eventualities.

What is covered in many policies

The liabilities which are covered by most premiums include elements of weather such as wind, lightning and hail. The human factors which may be covered by this insurance include theft and vandalism, explosion and vehicles or aircraft. Some premiums may offer limited coverage for building collapse during the construction process.

What is excluded from most policies

The human factors which are normally excluded from the contracts include employee theft, war and government action. In addition to these, there are natural factors such as earthquakes and water damage to property which has been left out in the open that will not be covered. If you get a contract penalty, it may not be covered under the premium. Other eventualities such as voluntary parting and mechanical breakdown will also not be covered in most builder's risk policies. It is important to note that if you need coverage for factors such as faulty design, materials and shoddy workmanship, you need to get a professional liability insurance coverage.

Getting an extension of your insurance cover

There are certain extensions that the policy owner may make to you when you are dealing with your construction. These include coverage of property when on transit to the construction site, coverage for temporary structures at your site of work, water damage resulting from sewer backup, fire department service charges, and temporary storage of your property. It is therefore essential to read and understand the policy document which the insurer will give you before you make any decisions regarding the premium.

Make sure that you understand everything which is covered, the extensions which you can get, and the things which are not included in the insurance cover. As long as you are in continuous consultations with your insurer, you will not end up counting losses when eventualities happen. Contact a company that offers construction insurance services to learn more.