Property Development Insurance

Dependable Property Development Insurance in Massachusetts

Developing a property can be an enjoyable and lucrative process. Still, there are many risks that can lead to financial losses that don’t exist with other land ownership situations. To avoid these risks, you need the right insurance coverage. LoPriore Insurance is an independent insurance agency that provides a variety of policies to help you find the insurance that fits your lifestyle. Our independent agents can help you find the property development insurance coverage you need to enjoy the financial opportunities of property development.

 

WHAT IS IT

Property development insurance is a policy that provides protection for unique risks you may face while developing a property. Owners face a variety of unusual dangers and work with several professionals over the term of a project. The risks you face as a result aren’t typically covered by personal and commercial insurance policies.

WHY DO I NEED IT

Typical property and commercial policies don’t provide coverage for the unique risks you may face while your property is under construction. While contractors are required to purchase a minimum amount of liability coverage, they might not have coverage for damage to your property. Additionally, you may be liable if your contractors fail to purchase the proper insurance.

WHO NEEDS IT

Property owners or managers who oversee property development need the proper insurance to avoid potential financial disaster. This may include a property owner, a landlord or property manager, or the construction manager of a development project.

Property Development Insurance Coverage Details

Ensuring you have the proper insurance coverage is an important part of developing a property successfully. Real estate developers face a variety of activities and work with many types of professionals. This means you’re often facing risks that might not be covered by a typical commercial insurance policy. Further, property development insurance can provide these additional policies for increased protection and zero gaps in coverage.

Professional Liability Insurance

A property development project can take many months or even years to complete. A variety of professional employees are included in the project and as a real estate developer, you’re required to oversee all the work that gets completed. Professional liability insurance (PLI) provides coverage for wrongful acts or negligence that occurs during the project. This can include issues with permits or liability claims related to errors or omissions by a professional on staff.

Environmental Insurance

Also called pollution liability, environmental insurance provides coverage for exposure to potentially dangerous pollutants. Redeveloping existing property can lead to the release of dangerous contaminants that could pose a risk to third parties working in the area or to the environment. Since most commercial liability policies contain an exclusion for pollution, this policy provides coverage for a serious potential gap.

Construction Policy

Sometimes called builder’s risk insurance, a construction policy covers damage to the developer’s own property. The policy can provide protection for damage caused by construction and can extend to cover equipment, materials, and supplies. A construction policy takes care of any claims during construction and avoids construction delays.

Business Interruption Coverage

All too often, construction projects can be delayed multiple times, resulting in a project that takes several months longer than anticipated. When construction projects are delayed for long periods of time, tenants have the right to terminate an existing lease. Business interruption coverage can provide reimbursement for lost rental income until a new lease is in place.

 

Owner Controlled Insurance Program

Under an owner-controlled insurance program (OCIP) the property owner can ensure that every professional included in the project has sufficient insurance to follow local construction ordinances. This policy provides broader insurance coverage and higher limits designed to give owners more protection while keeping costs low.

Every property development project is different. It’s important to take the time to discuss your unique situation and your options for coverage with your independent insurance agent. If you’re interested in learning more about property development insurance and the coverage you may need, get in touch today. Our agents are standing by to answer your questions, share more information about our available policies, or provide a quick quote for the policy you need right away. Let us worry about your insurance coverage so you can safely get back to the business of property development.

Property Development Insurance Protects Your Project

Reliable Property Development Insurance in Massachusetts

FAQs About Property Development Insurance

Why Do I Need Property Development Insurance If I Already Have Commercial Liability Coverage?

Many developers mistakenly assume that a commercial liability policy will provide all the coverage they need during a development project. Unfortunately, this could leave you with gaps in coverage and facing considerable financial loss.

What Risks Do Property Developers Face?

Every development project is different and your individual risks depend on the professionals and the type of work done on your property. Some of the most common risks may include

  • Property damage from contractors
  • Investors pulling funds due to delays or other issues
  • Weather destruction
  • Theft and burglary
  • Professional negligence
  • Workers’ compensation
When Should I Get Property Development Insurance?

If you purchase property with the intention of developing it to sell for a profit, you should get property development insurance as soon as you acquire the property. This will provide you with sufficient protection from the very beginning of the project.

How Do I Know How Much Coverage I Need?

Your property development insurance can be customized to fit the unique needs of your project. Talking to your agent about the land you own and the scope of your project is a great way to understand your coverage options. Your independent agent might want to know the following facts about your project.

  • The location of the property
  • How many contractors will be working on the project
  • What the building will be used for
  • If someone rents or leases the building
  • What types of insurance are already in place
Do I Need Property Development Insurance If I Renovate My Own Home?

Any time you plan a home renovation project, you should notify your insurance agent. While you may not need property development insurance, you may need to extend your homeowner’s policy to cover the changes included in the renovation. Your agent can also advise you about the coverage your contractors should have and how you should obtain proof of insurance before the project begins.

Learn More About Commercial Property Insurance

To learn more about property development insurance insurance designed to protect your projects, get in touch, today. In fact, our agents are happy to answer your questions, and provide you with insurance solutions, and offer a quick quote for the policy you need to break ground right away. Allow us take tend to your insurance so you can get back to developing your property.

See How Much You Can Save!

To learn more about how commercial insurance can protect your business, get in touch with the independent agents at LoPriore today. Our experienced insurance agents are available 24/7 to answer your questions, provide information about our commercial policies, or provide you with an instant quote.

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