Safeguard your property as the project is being built with builders risk insurance.
What is Builders Risk Insurance?
Builders Risk Insurance helps protect buildings and structures while they are under construction, renovation, or remodeling. This coverage may help protect the structure, building materials, fixtures, and supplies from risks such as fire, theft, vandalism (though not typically by your employees), hail, and wind damage. Builders Risk Insurance is commonly used for custom homes, commercial construction projects, and major renovations. While property owners can purchase this coverage, it is often a policy that owners require contractors or builders to carry during the construction process.
What this insurance covers.
Coverage is designed to help protect a project from unexpected losses while work is underway. Common covered causes of loss may include fire, wind, hail, theft, vandalism, and damage caused by vehicles or aircraft striking the structure. Protection may also extend to building materials, fixtures, and supplies intended to become part of the completed project.
Coverage limits are often based on the completed value of the structure or a percentage of the total construction budget. Since policies are typically written for a specific construction period, it is important to review the policy term carefully and understand any limitations on extending coverage if the project timeline changes
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Building or Structures Under Construction Coverage
Risk Factor
Your work-in-progress is a risk in the open. Damage from covered weather, vandalism, or other risks can slow or stop a project.
Solution
Building or Structures Under Construction coverage helps protect against damage to the building or structure being constructed from covered risks.
Materials and Supplies Coverage
Risk Factor
The materials and supplies you have on the job site are vulnerable to risks such as theft, fire, or other types of loss or damage.
Solution
Materials and Supplies coverage pays for the loss of covered materials and supplies used to complete the construction.
Equipment Coverage
Risk Factor
Your tools and equipment are of the utmost importance when building. Losing them to theft or damage could be a major problem.
Solution
Add Equipment coverage to protect valuable construction equipment used to complete the project from damage or other forms of loss.
Temporary Structures
Risk Factor
Weather, accidents, and other risks are potential dangers to temporarily erected structures that help you complete key projects.
Solution
Adding Temporary Structures coverage to your policy covers structures like scaffolding or signs from damage or other forms of loss.
Soft Cost Coverage
Risk Factor
There is often more at stake than what is at the construction site. Damages and delays can affect other parts of your business.
Solution
Soft Cost coverage helps with extra costs such as loan interest, lost sales income, rental income, real estate taxes, and more.
What types of coverage are included with a builders risk policy?
This policy typically includes coverage for the building itself, general liability, equipment breakdown, as well as ordinance and law.
Do you need builders risk insurance?
Whether you are the client or the contractor building the project, this is important coverage to have. Property owners, contractors, subcontractors, lenders, and architects will most commonly get this coverage.
Coverages that are not included.
It’s important to be aware of what insurance doesn’t cover. Unless specifically stated, it won’t cover specific increased risks such as flooding on a beachfront construction or earthquakes near a fault line. It also doesn’t cover injuries suffered by workers, meaning you’ll still need any legally required workers’ compensation insurance coverage, as well.
Do you need builders risk insurance to protect your property while under construction? Contact us to go over the unique needs of your property and the coverage options available to you.
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