We are thrilled to be adding a four story children’s wing to our hospital. Construction was progressing well and near completion. Last week a blizzard with sub-zero temperatures blew through. When we returned to the site after the storm it looked like the abominable snow man wreaked havoc on our new wing. Power went out. Pipes froze and burst on the top floor. Windows were smashed. Part of the roof detached. There was massive water damage on the fourth floor … and the third floor … and the second floor … and the first floor. The basement was an icy lake. It looks like months before we can open up. Our insurance advisor says Builder’s Risk insurance should cover this. What do you say?
– Ice Man
Dear Ice Man,
So sorry Ice Man, the abominable snow man (an underrated foe) left you out in the cold. Owners, developers and their lenders should assure that the work in progress on their construction site is insured by insisting on or obtaining Builder’s Risk insurance. BR will provide coverage when “The Abominable” crushes the children’s hospital under construction (bad abominable!). Builder’s Risk policies are not one size fits all. The BR policies are often confusing, full of exclusions and often litigated. It is crucial to understand exactly what is covered/excluded IN ADVANCE of signing your construction contract so when the cold winds of winter roll in and your pipes burst, you have protection. YouDig?