What it means
The policy typically covers the work in place, materials stored on site or in transit, and temporary structures against perils such as fire, water, theft and vandalism. Exclusions, deductibles and conditions vary, and renovation projects can involve different considerations than new builds because an existing building is involved.
The owner, the contractor or the landlord may carry the policy, according to the contract and the lease.
Why it matters
A gap in coverage can leave the owner or tenant responsible for a large loss. Water damage during a renovation, a fire in a partly finished building or theft of stored materials are all realistic risks. Landlords usually set insurance requirements for tenant work, and they must be met before work starts.
The policy also needs to coordinate with the landlord's property insurance.
How HSM handles it
HSM carries insurance appropriate to its operations and works with clients, landlords and brokers so everyone knows who covers what for each project. We read the lease and contract requirements at the start and provide certificates as required.
On site, our health and safety program, led by Ghilda Gaber, our Director of Health & Safety, and good housekeeping practices reduce risks such as fire and water damage. Our own mechanical crew also takes particular care when working with water lines in occupied buildings.
What to plan for
Ask your broker and the landlord for their insurance requirements before construction begins. Confirm who is responsible for the deductible.
Share the insurance requirements from your lease with us on day one. Meeting them after work has begun can delay the start.