How July Construction and Renovation Projects Can Impact Your Property Insurance Requirements

Taking on a construction or home improvement project in July can affect your insurance needs. PolicyChex Inc. offers commercial property insurance options that align with your budget and priorities.

Managing Risk During the Renovation Phase

When a construction project begins, existing commercial property insurance may not automatically cover the unique risks of an active job site. Renovations can introduce new hazards, including open structures, exposed frameworks, on-site specialized equipment and increased contractor foot traffic.

A builder’s risk policy, also known as course of construction insurance, may help cover the building, materials stored on-site and temporary structures during the project. Without proper policy updates, a claim during construction may be denied if the insurer was not notified of the increased and changing risks.

Reflecting Property Improvements in Your Policy

Once a project is complete, the building’s replacement cost may have increased. Added square footage, updated electrical systems, high-end finishes and other upgrades or improvements can make previous coverage limits insufficient.

If the policy is not updated to reflect the improved property value, a co-insurance penalty may apply, leaving the property underinsured in the event of a total loss. A post-project valuation reassessment can help confirm that coverage limits match the current property value.

Why Reviewing Your Coverage This Summer Matters

Assessing your coverage before or during a project can help:

• Identify gaps in existing policies
• Align new coverage with the current project scope
• Avoid interruptions to the work timeline

Get Covered Today

Contact PolicyChex Inc. to explore your coverage options in Anaheim, CA and get a no-obligation quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.