Investing in real estate can be a great way to build an independent income, but when you rise to the next level and take on property development, the business becomes a lot more complicated. There are limited risks to buying and selling buildings with minor improvements to make them turnkey-ready when compared to investments that require a complete renovation. Developers working with new construction have unique risks as well. So, what should you purchase to complete your real estate developer insurance package?
Professional Liability Coverage
At a minimum, you will need liability coverage that covers the most common areas where you could be exposed. That includes third-party liability for the completed construction, environmental coverage, flood coverage in many cases, and sometimes just a blanket liability policy to make sure you catch everything. Even if all you do is hire fully-bonded contractors to do the work instead of keeping it in-house, your operation needs liability protection.
Risk Coverage, Employment Insurance & More
Many investors who turn to full development projects also wind up building their own businesses to handle much of the work. It makes sense, after all. If you are busy enough to need your own full-time construction crew, why take bids when you can fund one? Business risk insurance that includes crime protection, employment insurance, and other common forms of business coverage may be warranted under those circumstances. To learn more, talk to a professional whose experience with real estate developer insurance can help you find the right policy.