Do I Need Insurance During Houston Commercial Construction?

partially completed Houston commercial construction project

You may need specific insurance coverage while Houston commercial construction is in progress.

As a property owner, you know that insurance is important once the building is built. However, what do you do while Houston commercial construction is in progress? There are insurance policies that can cover unfinished buildings that are in the process of being built. In this article, we’ll explain this option and why you may want to invest in this type of insurance during construction.

Is There a Type of Insurance that Protects My Unfinished Houston Commercial Construction Project?

Property insurance typically provides coverage for occupied, fully-operational buildings. Therefore, this creates a gap for many Houston commercial construction projects for buildings during the construction process. 

You know how important it is to work with a general contractor that has liability insurance and is bonded for the work. This helps protect you from liability for things like injuries or damages during construction. Bonded Houston commercial construction companies also have special insurance to ensure they can complete the work or pay for another party to complete the work. 

However, as you may have realized, this creates certain gaps in insurance coverage during construction. For instance, what do you do about damaged materials or unfinished structures? Weather and vandalism can cause these issues.

This is where builder’s risk insurance comes in. Builder’s risk insurance is a type of insurance that helps cover these types of issues. Typically, most contractors and subcontractors have their own builder’s risk insurance policy. However, it may also be helpful for building owners and developers to get their own builder’s risk policy as well. 

Things to Consider About Builder’s Risk Insurance

When it comes to builder’s risk insurance for your commercial or Houston industrial construction project, there are several things to consider. An experienced insurance agent can help you determine the right options for your needs.

One thing to think about is the types of coverage you need. Builder’s risk insurance policies generally cover costs for materials, supplies, and equipment damaged by things like non-severe weather, fire, vandalism, or theft. They generally exclude damage from things like hurricanes, faulty materials, employee theft, and wear and tear like rust and corrosion. There are often add-ons to your coverage for things like earthquake damage and other uncovered events. 

Another thing to carefully consider is when the policy begins and ends. Generally, you want to have the policy begin before any materials arrive at your Houston commercial construction site. Most also maintain the coverage until the building is ready to be occupied. 

Also, like any other insurance policy, it’s important to check the policy limits. These are essentially maximums that the policy will pay in case of an event. You want to make sure the limit meets your needs. 

Premier Commercial and Industrial General Contractor in Houston – GRA Gulf Coast Construction

Our team at GRA – Gulf Coast Construction offers superior quality construction services for your commercial and industrial building needs. We’ve been providing the Greater Houston area with top quality construction services for nearly 25 years. Our team handles your entire project from beginning to end through our Houston design build services. Contact our team of seasoned professionals to schedule a construction consultation!

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