Builder’s Risk Insurance can protect you from many perils on a construction project. Here are 7 things you should know about this coverage:
This insurance is specialized property coverage that is applicable to buildings in progress. Course of Construction insurance is another name it goes by. It doesn’t apply to all construction projects. It is applicable to:
This is property replacement coverage. A policy should be valued at 100% of the replacement cost of the building at completion. If it is less than this, you will be underinsured. This means that if a loss event occurs, you will only be paid out a portion of your claim.
A standard property insurance policy will not suffice when you are building. It doesn’t protect you from many risks that can occur in the construction process and will leave you exposed to loss. A Builder’s Risk policy will minimize your exposure. One policy can also cover all those that have a financial interest in the project. This means that all participants can be named insured – for example yourself as contractor, the architect, the owner, and the lender.
Your policy should be tailored for your business and project. The value of every project is different, as are the materials used and its location. A policy should cover you for the risks that your project faces. Typical risks on a construction site include fire, damage from weather, theft and vandalism. Some examples of other coverage that can be included are:
Always check your policy wording as there may be things that are excluded. For example sometimes subcontractors are not included in the coverage. Projects that are located in tornado states or by the coast can exclude damage from wind, flooding and earthquakes. If you need this coverage, ask for it to be included in your policy. This can be done by endorsement. Having the right coverage is key to protect your investment.
This insurance is intended to protect you whilst in construction. A policy has a start date, as well as an end date. It is important that you are aware of these so that your project is always covered. You can choose a policy that is 3 months, 6 months or 12 months long.
Speak with the experts at Builder’s Risk.net. We specialize in this type of insurance. Call Builder’s Risk at 877 960 0221 today for the right coverage for your project, at the lowest rate.