Here are a few plausible scenarios the owner might face if they avoid this expense.
- Natural disaster
No one can possibly predict with accuracy when a natural disaster like an earthquake or flood will strike. But, if it does, it brings a catastrophe. It is best to guard yourself against them. Specialist insurers make sure that the covered risks include all-natural disasters.
- Vandalism or theft
Materials, construction equipment, and tools cost a lot. A mini digger can cost more than 10,000 pounds. If you have hired it, you may be liable for paying the continual hire charges until it has been replaced. If the project site is located in a remote corner, theft becomes a real possibility. Neighbors can also inflict a lot of damage if they happen to be inimical to your interests.
- Insolvency
Construction costs may scale up, and it can cause you to cough up huge sums of money. Bankruptcy is something that is far-fetched, but things can go awry. An owner must be prepared for anything. The insured party will be able to bear unexpected costs with the help of site insurance.
- Liabilities
Since it involves the use of construction equipment and working at a height, injuries can happen. The expenses to be borne on this may become a liability for the owner. Failure to do so can result in a prosecution against you. If you have effective self-build insurance, these liabilities can be covered. A specialist insurer knows the common safeguards the policy should have. It is customised in such a way that it will include all the common perils associated with construction.
- Schedule overruns
Self-build projects may not get completed on time. If it doesn't run according to the expected schedule, it may cause a loss of rental income. Specialist insurers can adjust the duration of coverage based on the specific needs of a construction project. This flexibility allows policyholders to customise the self-build insurance coverage to match the timeline of the construction activities. For example, if a project takes longer than initially anticipated, the coverage period can be extended, providing continued protection for the site and its assets. This feature helps ensure that insurance aligns with the dynamic nature of construction projects, offering adequate protection throughout different phases.
Conclusion
Site insurance is not an unnecessary expense but a crucial safeguard. From unexpected disasters to financial risks and delays, skipping insurance exposes owners to significant liabilities. It shields against natural disasters, theft, financial hardships, liabilities, and construction delays, ensuring comprehensive protection through a project's dynamic phases. These policies can be customised to match project timelines, safeguarding against schedule overruns. Ultimately, this insurance is a crucial safety net, offering financial protection and peace of mind amidst the unpredictability and potential hazards of construction projects.
