What is a construction insurance?

Construction insurance is a compulsory step for an investor if he or she wishes to obtain a construction permit and start construction. Hopefully with this article, abn5 has more understanding of this type of insurance.

Insurance for construction works
When participating in construction insurance, once the risk arises, the insurance company will compensate for material damage with a maximum of the value of the building. However, compensation should be agreed between the two parties and agreed on the insurance certificate. Buying insurance is a compulsory procedure for all investors when they want to be licensed as well as construction. Whether it is a public or private project, construction permits and insurance documents are required before construction starts.
Subjects insured Construction insurance refers to many different subjects, including: • Public, industrial, transportation, irrigation, energy, housing and other facilities. • Construction equipment for the construction process. • Construction machinery. • Part of the installation work that serves or constitutes part of the construction process. • The property is available and is within the scope of the Site owned, managed, controlled by the Insured. • Responsibility for third parties.
Scope and calculation of insurance for construction works
The scope of coverage is divided into two parts, one is physical damage and the other is liability to third parties. For material damage, the insurance will cover the replacement or repair costs of the insurance coverage mentioned above. The insurance will also cover the cost of damage caused by any kind of damage and for any reason, as long as it is not excluded in the insurance rules.
In the case of liability to third parties, insurance will cover the insured person's behalf in the following circumstances:
• Injury or sudden illness to a third party • Loss of property • Legal costs and costs incurred by the written consent of the insurer The method of premium calculation is as follows:
Premium = Building value x Premium rate
In particular, the rate of insurance premium will be determined by the insurer depending on the risk of the project and will be surveyed by the insurance company.
Whenever an investor wants to start with a construction work, whether private or public, in addition to construction permits, insurance is required. Construction insurance is an important procedure as well as compulsory if you want to build. Therefore, the following article will give you the information you need to know about this type of insurance.