Building Insurance Quotes – What is Required?

  • Whether you’re a builder or buyer of prefab metal buildings, there are a number of insurance types and issues associated with getting Building Insurance Quotes. From basic business insurance to all risk (or builder’s risk) to bonding (yes, bonds are a type of insurance) to owner’s metal building insurance, one must be aware of the advantages and the downsides of each type of building insurance.

    First and foremost, comparing insurance quotes is not about cost but more for coverage. A very inexpensive insurance policy may not provide the coverage that you need or desire. Make sure that you as owner have the right insurance policy and that your contractor has the coverage required to give you piece-of-mind.

    Obviously, as owner or contractor, you want the contractor to have basic business insurance. Business insurance covers general operating occurrences. It can be a basic policy or have very comprehensive coverage. Insurance quotes for this type can therefore be quite varied. For the building owner, basic insurance covers the necessities. As a contractor, you may want the comprehensive type.

    Builder’s Risk Insurance (or all risk insurance) is of importance to the owner and contractor alike. This type of insurance is project specific and can name the owner as one of the insured’s. If a fire consumes a project under construction for example, this type of insurance can provide protection for both the owner’s paid portion of the project and the contractor’s materials and equipment. Builder’s Risk can also cover damage to materials or equipment at the project site or even in transit

    Bid Bonds are insurance policies for owners. Contractors are scrutinized carefully before an insurance company will provide a quotation. Owners are protected with this type of insurance by ensuring that bidders on their project will enter into a construction contract if they are low bidder.

    When a contract is entered into, the Performance Bonds and the Labour & Material Bonds can be required by the owner. Contractor will provide these bonds as protection for the owner ensuring that the contractor will complete the project, and that he will pay his suppliers and sub-trades.

    Once complete and turned over, the owner must then provide his own building insurance. When getting metal building insurance quotes, make sure to check for discounts on your insurance premiums for a non-combustible building. You may be pleasantly surprised.




     

    What to Do Next

     

    -For more information on each type of insurance, follow the links above.

    -Go to our Metal Building Kits Articles Map for a variety of informative articles packed with tips, tricks and ideas.