Construction Insurance: An Intangible Life-Saver
- Carlos Ramirez
- Jun 15, 2022
- 7 min read
By Carlos Ramirez
English/Spanish
Ecuador, in addition to being known for its magical tourist destinations, gastronomy, and unique flora and fauna, is also known for being within the Pacific Ring of Fire. This means that seismic activity is something to consider before striking ground and building a house in Ecuador. Additionally, you should consider who you will hire for the execution of your work and what guarantees this builder offers you. The quality of work and type of construction policy you agree upon will make a difference!
A good construction policy will allow the building process to be easy and simple, since your house will be insured from its foundation all the way through the construction process until the delivery of the house. A construction policy guarantees that in the event of any natural or seismic event, the foundation will be insured and you will not lose the money you have invested in building the property. When buying a construction policy, the insurance company will start by verifying that the chosen builder is reputable. This builder must have experience building similar properties and no history of failed constructions. Many companies will not be able to insure you if the builder does not meet these requirements as the work of the builder cannot be guaranteed. In terms of coverage, if your house is in the middle of construction and suddenly an earthquake fractures a column or one of the walls, the company will carry out an inspection to verify the reasons for this fracture and the expert will determine the amount to compensate you for the reported damage. In the case that it is necessary to tear down everything and rebuild, this expense will also be covered by the insurance company.
Coverages for policies vary, but the most important things to consider are the following:
