Course of Construction Insurance (COC)

You’re planning on making renovations or opening a new dealership at a different location. You’ve invested a great deal of money in this, which is why you should make sure that you’re adequately protected while construction is taking place.

Usually the contractor or developer of the property obtains a Builder’s Risk policy or Course of Construction (COC) insurance. But if you are responsible for insuring the property while under construction during renovations, you need to have this policy.

At Dealer Protection Group (DPG), we can provide you with Course of Construction insurance, designed to provide coverage for buildings while under construction. COC covers the value of the property being constructed until it’s either moved into, or ready for occupancy, the contractor’s value in materials at the job site before being installed, and materials in transit intended for the job.

The policy may be written to cover the whole structure for new construction or for rehab projects. It can also be used to cover a specific project such as an addition.

Typically what is covered is loss due to fire, windstorm, lightning, hail, theft, and vandalism. Limited coverage may be provided for structural collapse during construction. There are also exclusions such as earthquake, water damage, and others that we can discuss with you.

What’s more, there’s coverage for “soft costs” – expenses for the building process other than materials, such as reimbursement for losses caused by a delay in completion in opening the project. This would include real estate taxes, interest, consulting fees, legal fees, accounting and advertising and/or marketing, equipment rental, overhead, insurance, refinance charges, and architectural and engineering expenses.

Expanding, renovating? Be sure you’re covered.
We can review this COC coverage with you in detail. Give DPG a call at 949.208.8550.