What is Course of Construction Insurance?
Course of Construction (COC) insurance is also known as Builders Risk coverage. COC coverage is a special type of property insurance that protects against damage to buildings while they are under construction or (substantial) renovation. There is no single standard builders risk form, so when time permits, we like to obtain a few quotes to compare the coverage.
Coverage is usually written on an “All Risks” (ie. except what is excluded) basis and typically applies not only to property at the construction site but also to property at off-site storage locations and while in transit. Builders risk insurance is typically written on a completed project value. This type of coverage is written in a cost per month of coverage eg. 3, 6, 9, 12 months. Depending on the insurer, the cost can increase when an extension is needed and in most cases, the remaining premium is non-refundable when the construction is completed.
What Does Course of Construction Insurance Cover?
Common Course of Construction Losses:
This wording also has the ability to cover “Soft Costs” being costs that would be re-incurred after a loss. Eg. Financing charges, Legal, Accounting, inspections, fees
Additional types of coverage these policies can cover include:
- Debris Removal
- Installation Floater (Building Materials on site)
- Property in Transit
- Temporary Structures or work trailers
- Scaffoldings, Construction Forms & Temporary Fences
- Fire Department Charges
- Pollutant Cleanup and Removal
- Increased costs due to by-laws, including Demolition Cost and Increased Cost of Construction
- Inflation Protection
- Soft Costs, Delay in opening, Extra and Expediting Expense
- Equipment Breakdown
Note that different insurers can require different site protection or have different restrictions in coverage, including but not limited to:
- Fencing Warranty
- Heating Device Warranty
- Hot Work Operations / Watcher Warranty
- Refuse, Waste and Debris Removal Warranty
- Security and/or Alarm Warranty
- Locked Vehicle Warranty
It is important to read all of this special warranties / exclusions very carefully.
Get A Quote – Applying for Course of Construction Coverage
To insure Course of Contruction on a project-by-project basis, or even to just determine the exposures of a specific project, an application will be needed, customized depending on the type of project. Choose from one of these applications, to obtain a quote:
- Builders Risk Residential Application
- Builders Risk, Renovation Supplement (in addition to Residential Application)
- Builders Risk and Wrap Up Liability Application
- Commercial Builders Risk Application
What Additional Information to Include with the Application?
- Site Plan
- Geotechnical Report, or Summary & Recommendations
- Breakdown of Values for the structures / type of work
- Construction Plan / Cost
If you have any questions, we’re here to help. Please “Collis” at 403-265-5475 or email us at email@example.com.