• Call 24/7 Icon(877) 960-0221
Builders Risk LogoBuilders Risk LogoBuilders Risk LogoBuilders Risk Logo
  • Builders Risk
  • FAQ
  • About us
  • Reviews
  • Contact
  • Blog
  • Call Us 24/7 (855) 597-1921
English
  • Spanish
INSTANT QUOTE
✕
Principal Banner of What is builder risk Insurance
What is Builders Risk Insurance?
October 1, 2021
Principal Banner Of What does Builders Risk Insurance Cover
What does Builder’s Risk Insurance cover?
October 4, 2021

7 Pitfalls to Avoid When Purchasing Builder’s Risk Insurance

October 1, 2021
Categories
  • Blog
  • Builder's Risk
  • Building Under Construction Insurance
  • Course of Construction insurance
Tags
  • best Builder’s Risk Insurance to buy
Principal Banner of Is Builder’s Risk Insurance For Property Damage Claims

When it comes to construction projects, Builder’s Risk Insurance is one of the most important pieces of the puzzle that often goes overlooked. Builder’s Risk insurance covers property in the course of construction. This policy protects materials and fixtures while construction is taking place.

Builders Risk Policy Covers Property in the course of construction

It even covers them while in transit and/or at a temporary location. Contractor tools are usually not covered under this policy unless indicated. The responsibility to get this coverage should be assigned to the property owner, developer or contractor depending on contract stipulations.

If you have any doubts or need some answers? Call an Expert.

(855) 596-1855

Here Are 7 Important Points To Consider When Searching For A Builder’s Risk Policy

1) Policy Period

Builder’s risk insurance is usually a “one shot” policy meaning there are no refunds if you cancel early.  There are 3 month, 6 month, 9 month and 12 month policies which can also be renewed if the project goes longer.

Builders Risk Insurance is a one shot policy no refundable there are policies for

2) Starting On Time

It is important that your project starts within 30 days of the policy effective date. If the project is more than 20% completed when seeking coverage, it can be difficult to acquire builder’s risk insurance.

If the project is more than 20% completed when seeking coverage, it can be difficult to acquire builder’s risk insurance

3) Insuring To Replacement Cost

It is vital that your project be insured to the finished building value. If it is not and there is a claim, you will be subject to a co-insurance penalty.  This can be a devastating financial loss and should be considered when determining how much insurance you are going to purchase.

It is vital that yor project be insureb to the finished building value

4) Soft Costs

You have to buy an endorsement to cover soft costs which might include but are not limited to: attorney fees, real estate marketing, architecture plans, etc.

You have to buy an endorsement to cover soft costs which might include but are not limited to attorney fees, real estate marketing, architecture plans, etc

5) Change Of Plans Coverage

This covers additional costs to rebuild your project a different way than originally planned due to unforeseen circumstances like design changes or drawing errors, which could result in disputes and legal battles.

Covers additional cost to rebuild design changes and drawing errors

6) Replacement Cost Coverage Versus Actual Cash Value

If your project is a rehab, many policies will cover the existing shell to Actual Cash Value which accounts for depreciation and the renovations at replacement cost. It is always best to purchase a replacement cost policy that does not deduct depreciation but pays to replace new.

2 types of coverages replacement cost and actual cash value

7) Liability Coverage

Most Builders Risk policies are strictly for property coverage and do not cover someone getting hurt in the building. It is important to have General Liability coverage on your project to protect from a lawsuit against you. If you are acting as both the owner and builder it is vital to have a Commercial General Liability Policy in place.

Most Builders Risk policies are strictly for property coverage and do not cover someone getting hurt in the building

You can obtain a Builder’s Risk Insurance quote by calling (855) 596-1855. Let us make getting insurance coverage trouble-free. Get the coverage you need at the rates you deserve.

Get a Free Insurance Quote

(855) 596-1855

Share
Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.

Related posts

Banner-Principal-Top-6-builders-Risk-Insurance-Companies
January 4, 2023

Top 6 Builder’s Risk Insurance Companies for 2023


Read more
5 Things Clients Want To Know Before Hiring A Contractor
December 21, 2022

5 Things Clients Want To Know Before Hiring A Contractor


Read more
Principal Banner of Does Builder Risk Include GL for contractors
July 27, 2022

Does Builder’s Risk include General Liability Insurance for Contractors?


Read more
builders risl logo white

Our agents write hundreds of Builders Risk policies a month. Get a policy, with a lower cost than a local agent, customized to suit your business’ needs. We will save you time, money, and you’ll avoid all the hassle.

Contact

21750 Hardy Oak Blvd
Ste 104 #58548
San Antonio, TX
78258

Phone: (877) 960-0221
Phone: (866) 539-0672
Mail: [email protected]
Quote Now

Links

Home
Builder Risk
FAQ
About Us
Review
Contact
Blog

Languages


  • English

  • Español (Spanish)

Partners

Contractors Liability

Farmerbrown

Cookies policy | Sitemap
All rights reserved builders risk®
INSTANT QUOTE
English
  • English
  • Spanish