What is Contractors Installation Floater Insurance and Why Should a Contractor Purchase It?
Many homeowners don’t realize that installing solar panels and windmills requires installation floater insurance. It can be significantly less expensive than builders’ risk insurance. However, this type of coverage does have limitations. It only covers moveable property and does not cover items while in air or waterborne flight. Nevertheless, this type of insurance is essential for any solar installation. So what is it and why should a contractor purchase it? Read on to learn more about this type of insurance.
SunPower requires installation floater insurance
In the event that a solar contractor slips and falls on a rooftop, or damages the solar equipment during installation, you will be covered under the installation floater insurance. This type of policy covers tools and machinery, such as a cherry picker. Additionally, it includes coverage for wind and vandalism. You can also choose to add coverage for mold damage. Water damage is one of the most common complaints from homeowners following sub-par solar installation work, and this type of insurance coverage may not cover the secondary effects.
It is less expensive than builders risk insurance
While Builders Risk Insurance covers the entire scope of a construction project, Installation Floaters cover a particular set of materials and equipment. While Builders Risk Insurance is beneficial for general contractors, installation floaters are better suited for subcontractors and task-specific contractors. Installation floaters eliminate coverage gaps and cover the first-party risks that are unique to installation projects. Furthermore, Installation Floaters cover a variety of high-value equipment and materials.
It covers moveable property
Installment floater insurance is a type of inland marine insurance policy that protects movable property. The coverage extends to tools, equipment, and appliances that are required for the completion of the job. It can also cover materials that are in transit or waiting to be installed. This type of policy can also be used by tradespersons who need blanket coverage for their entire project. However, this type of coverage is not required for each type of construction job.
It excludes coverage for property while it is airborne or waterborne
Many insurance companies exclude coverage for property that is airborne or waterborne, especially if the contractor uses a crane or other watercraft during the construction process. Make sure you know what is excluded from your policy. Also, check if your policy covers underwater equipment or bridge construction. If the floater doesn’t cover these risks, make sure you negotiate with your insurer to add additional endorsements to the policy.
It protects against fire
An Installation Floater policy covers the property used for the construction project. This insurance policy will vary from company to company. In general, it will cover the contractor’s owned equipment and property. This type of insurance policy also protects against theft or fire. It may be cheaper than standard Builders Risk Insurance. The floater will also protect against loss or damage to rented or leased equipment.