PHILADELPHIA--(BUSINESS WIRE)--
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 today 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.”
Key highlights from ACE’s paper include:
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The importance of recognizing the many potential sources of water
damage, and understanding that, regardless of how well a project is
managed, damage can still occur
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Understanding why it is critical to know what is covered by a specific
policy when obtaining coverage, not after a loss
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How proactively identifying risks on a construction site may help
mitigate future losses
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What a comprehensive prevention plan might look like, including steps
for pre-task planning, proper work sequencing, and robust response
measures if leaking water is found
To access the paper, please visit
our website. For more information about ACE’s Builders’ Risk
offering and other Inland Marine products and services, visit www.acegroup.com/us/inlandmarine.
The material presented in this report is not intended to provide legal
or other expert advice. It is presented as information only. Readers
should consult legal counsel, insurance brokers or other technical
experts, as applicable, with any specific questions they may have. The
descriptions of insurance coverage terms are summaries only. Readers
should review their insurance policies closely for the actual terms and
conditions of the contract.
About ACE Group
ACE Group is one of the world’s largest multiline property and casualty
insurers. With operations in 54 countries, ACE provides commercial and
personal property and casualty insurance, personal accident supplemental
health insurance, reinsurance, and life insurance to a diverse group of
clients. ACE Limited, the parent company of ACE Group, is listed on the
New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500
index. Additional information can be found at www.acegroup.com,
or follow ACE on Twitter, https://twitter.com/ACEGroupNA.
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Source: ACE Group