Insurance for Colorado Property Under Construction
What kind of insurance does your Colorado or Denver business need for a newly acquired property that will be undergoing renovations, tenant finish, remodeling or major construction before its occupied?
There are a few options that are available to you but there is a right way to insure the property. We suggest that either the owner or the construction company performing the renovations/remodel purchase a builders risk policy that includes coverage for the building. These policies are not very expensive and will cover the property during the course of construction. They can be tailored to meet your timeline of 3, 6, or 12 months. Once the construction is completed we would then offer you a general liability and property coverage that takes into account the tenant occupying the property. Please contact us for builders risk quotes, policies and service for your Colorado construction project.
Some insurance agents may offer you general liability and property or a business owners policy that assumes the property is rented and occupied by the tenant. The rates and type of policy offered will depend on the type of company occupying the property. This policy will provide coverage but you are running the risk of the insurance company inspecting the property, noting that the tenant has not moved in and its under construction, and canceling the policy because the risk is not what was rated for.
While purchasing a builders risk policy may seem that this is an unnecessary step, it is much easier than having to scramble after an inspection to provide insurance for the property once the insurance company pulls out. Additionally, many times it is less expensive than the other option.
If you have any questions on property insurance, builders risk insurance or any other insurance product please feel free to contact Orcutt Insurance Group.
Thank you for your consideration.
The Orcutt Group Team