Having a Builder’s Risk policy is crucial to your business; especially when the property you are working on is under construction. One vital aspect about this policy is that it will give you the coverage that you cannot find with your general liability insurance.
For instance, vandalism protection is included, and your building materials are safeguarded against theft.
Before we delve into more details about your Builder’s Risk policy, we should mention that general liability insurance only provides coverage to your business, assets, and yourself. On the other hand, your Builder’s Risk insurance will protect the property that is under construction – so long as it is less than 30% complete.
Not all Builder’s Risk policies are the same. For instance, in some policies, theft is either covered up to the insured amount, or to a limit of $10,000. However, some policies don’t cover theft at all. Therefore, check your quote carefully before you settle on the right Builder’s Risk insurance policy.
Choosing your Builder’s Risk insurance policy can be challenging if you are inexperienced about insurance matters. However, let’s look at the following tips to help you make the right selection.
Under your Builder’s Risk insurance policy, you can insure your property up to 100% of its final value. This is advantageous to you in case the costs of the building go up. However, if you insure it less than that, you could lose out in the event of making any claim.
It is essential to know that many policies in the coastal states of the U.S. don’t cover for wind and hail. However, for the few policies that do cover this, often a proportion is deducted from your claim once you incur the loss. Therefore, before you take up the coverage, check the quotes carefully to choose the best one for you.
Risk management for contractors is critical when dealing with valuable investments. Therefore, before you choose any policy, find out whether it will be possible to increase your coverage if the value of your projects increases over the course of construction.
Your insurance agent should assess your company’s specific needs before making any decisions. Different policies are tailored for specific risks that may arise in the course of construction. Talk to our expert team. We know about Builder’s Risk and will steer you in the right direction. Call Builder’s Risk Insurance at (877) 960 0221