The 2024 federal budget went big on housing, with some claiming it is the most ambitious housing supply plan any federal government has released in the past fifty years, and for good reason. The estimate is that Canada needs to build 3.5 million homes over ten years (2021-2031) to meet demand. Something that has never been done before in our history.
With the push to build more homes and the subsequent rise in new building starts, now is the time for homebuilders to review their course of construction insurance to ensure they’re set up for success. To help you feel prepared and informed to converse with your broker, we’ve answered the six most common questions our clients have when it comes to course of construction insurance.
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Course of construction insurance, also referred to as the abbreviation COC Insurance, is a type of construction insurance builders, developers, and contractors purchase to cover buildings and structures during the construction or renovation process.
This insurance provides protection in the event of damages or loss caused by fire, vandalism, theft, or natural disasters. Course of construction insurance typically begins when construction starts and ends when the project is completed. COC insurance aims to protect the financial investment in a construction project by covering unexpected damages that occur throughout the construction process.
While on the surface course of construction and builders risk insurance sounds like different types of coverage, the fact is, they’re exactly the same. The terminology course of construction insurance and builders risk insurance are used interchangeably.
No matter the name used, they both cover damages to a structure that is under construction and protect the financial interests of builders, contractors, or property owners.
While not legally required by the government in Ontario, Canada, any builder, contractor, or property owner undergoing a construction or renovation project would be wise to carry course of construction insurance. In addition to the financial protection it provides, many construction contracts, lenders, and stakeholders require course of construction insurance.
Despite it not being necessary to carry course of construction insurance by law, having this protection is highly recommended for anyone involved in a construction project. By design, it provides financial coverage if an unexpected event occurs that results in financial losses during the construction phase, a critical risk mitigation strategy for any construction business.
A comprehensive course of construction insurance covers a variety of risks that could be experienced during the construction process. Typically, a course of construction insurance covers:
Like any insurance coverage, the cost can vary depending on several factors, and course of construction insurance is no different. Typically, when an insurance provider provides a quote, they will take into consideration the following:
Working with an experienced insurance broker, like the ones at Buildsure, who specialize in construction insurance, can make all the difference in your course of construction insurance costs. They will assess the unique risks associated with the project, source multiple quotes from their network of top insurers, and provide their insights and advice on each quote, helping you make an informed decision on your course of construction insurance purchase.
You can buy course of construction insurance online by filling out an online form to get in touch with the team at Buildsure. Your project is unique and should be your tailored course of construction policy. An experienced construction insurance broker will reach out to learn about your project and, through their relationships with insurance companies, source multiple quotes for your project. The process is simple, and there is no obligation to buy.
If you’re still left with questions about course of construction insurance, the insurance brokers at Buildsure are here to help. They’re experienced and knowledgeable in course of construction insurance and can tailor a policy specifically for your project, saving you money while maintaining coverage.