Your building under construction can be protected by Builder’s Risk Insurance. As a contractor, would you want to pay up to $240,000 dollars out of your own pocket? Or would you rather pay between $240 – $800 a month over 12 months? This is a very real scenario you could encounter. The average cost of constructing a family home in the U.S was $240,000 in 2019. What would that mean to you, as a contractor without Builder’s Risk insurance? In the event of a fire razing a building under construction to the ground, you may have to pay for those reconstruction costs out of your own pocket.
Let’s take a look at 6 reasons why Builder’s Risk Insurance is good for your business.
Builder’s Risk coverage is effective from the date construction commences to the date of completion. Or, when the building starts being utilized for its intended purpose. In case of damages in the course of construction, Builder’s Risk payouts will go towards repair and rebuilding costs. Cover may include compensation for damage to the building itself, scaffolding, and even landscaping.
If your building under construction is damaged during riots or by acts of vandalism, you will be compensated. Some Builder’s Risk coverages exclude protection against vandalism. It is advisable to discuss the specific terms with your insurance provider. This way we can make sure you are protected.
The theft of construction materials from a construction site is a common problem. Your Builder’s Risk coverage will offer compensation for theft under certain circumstances. Most polices offer compensation up to $10,000. You may not be compensated for theft committed by your employee.
Depending on the terms of your cover, your Builder’s Risk will offer protection for materials on site. Or, stored at an off-site location or in transit. Materials account for a huge percentage of your construction costs. Builder’s Risk gives you peace of mind knowing that you will recoup those losses.
Equipment such as HVACs and lifts permanently installed on the construction site can be included in your cover. You will be compensated in case of damage.
Depending on the location of your construction site, your coverage will protect against certain weather, such as hail and wind. Sites within 50 miles of a coastal area may be excluded from hail and wind coverage. Or, may have to pay higher premiums. Weather events that are generally excluded are lightning strikes and flooding.
All contractors benefit from Builder’s Risk Insurance. The alternative of paying out-of-pocket for unexpected losses to a building under construction is expensive. By getting your Builder’s Risk insurance coverage, you pay minimal premiums. The alternative is facing crippling repair costs if your business bears the weight of these costs. At buildersrisk.net, we have access to over 15 reputable Builder’s Risk insurance providers. Our agents will get you the right quote and cover in a matter of hours. Call us today on 887 960 0221 and get your free quote.