Builders’ Risk Insurance – Will Your Project Stay Afloat? New ACE Paper Explores Water Damage Coverage

By a News Reporter-Staff News Editor at Insurance Weekly News -- When water rises as a result of torrential rain, storm surge, melting snow or any other weather-related event, it leaves destruction in its wake. But that isn't the only way that water can be highly destructive. A slow leak can be just as damaging to construction projects as a sudden flood. When it comes to builders' risk insurance, where the water comes from and how the damage occurs can make all the difference in respect to policy coverage.

ACE Group released a new paper that examines how builders' risk policies often distinguish between water damage, flood or storm surge, and how the policy wording can impact coverage. It also outlines steps builders and contractors can take to proactively address this risk and, ultimately, to help avoid severe consequences. "Builders' Risk: Water Damage or Flood?" was co-authored by Mark Gadaire, Senior Vice President, ACE Inland Marine, and Raymond Szczucki, P.E., ARM, Account Engineer, ACE Inland Marine.

"Whenever water finds its way onto a project and ends up where it doesn't belong, major setbacks and costly damage can follow. Too often, policyholders don't recognize the differences in policy wording that determine what and how much coverage is provided when these types of events happen. It's important to have a clear understanding of this when obtaining coverage, not after a loss," said Mr. Gadaire. "Policyholders should also be aware of the steps they can take to protect construction sites from damage. By proactively ensuring the right coverage is in place and making water damage prevention an everyday part of project culture, builders and contractors may be able to reduce the likelihood and/or limit the financial impact of a loss."

Keywords for this news article include: ACE Group.

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