A loss to a project while it is under construction can generate expenses and income loss. An endorsement to the DOP is available that will provide coverage for soft costs. Following are examples of soft cost losses and the coverage that can be provided by endorsement. Whether it is an apartment house, a condominium or a shopping center, the owner of the project will spend extra money on advertising. This advertising might be in regard to such facts as when the project will open and the proposed revised opening date.
Coverage is provided for extra advertising costs that result from a loss.
After a loss, a project owner might incur higher than normal expenses in an attempt to reopen more quickly. An example of expediting expenses is having some key items shipped by air rather than ground transportation. Another expediting expense that is quite common is paying workers for overtime. These and other types of expediting expenses are covered as part of the soft costs endorsement. Architects, engineers, consultants, attorneys and accountants will make charges for the additional work they must do as part of the loss repairs and continuing on to the end of the construction project.