Planning a home renovation project? It’s a great way to remodel and beautify living spaces. You also get to add usable area and make it more functional and comfortable. Many eco-conscious homeowners are replacing old windows and doors to lower energy costs.
These are all good reasons to renovate. What is more, a good renovation can increase the property value.
So, you are ready to renovate, right? But can your plans go up in flames? Yes! Fire is one of the biggest risks for construction or renovation projects.
As the homeowner, you need Builder’s Risk because your homeowners policy does not protect the building when under construction. Many homeowners make the mistake of thinking their homeowners policy does this job. But it does not.
In April 2019, the world watched in horror as a fire consumed the 800-year old Notre Dame Cathedral in Paris. This was due to a fire caused while a six-million-dollar renovation was underway. So, can it happen to your (much smaller) renovation project too?
The risk of fires breaking out in construction projects is high. Buildings under construction may not yet have a good water-supply or fire-safety systems and sprinklers. There are also storage spaces for inflammable materials. Debris and other flammable waste accumulate when left lying around. Tools such as blow-torches, welding and soldering equipment are commonly used in renovation projects.
Additionally, many contractors turn off available sprinklers and fire alarms because dust and sawdust often set off false alarms. While Homeowner’s Insurance provides certain benefits, it doesn’t offer protection to the building during renovation.
This is a specific category of property insurance. It covers damage to materials and fixtures. But only when a building is under construction. The coverage ends when the project does and the building is completed. So, when the renovation is done, the policy ends.
The best buy Builder’s Risk insurance covers losses caused by theft, vandalism, wind …and fire.
Generally, the best Builder’s Risk insurance to buy costs around 1-4% of the total construction cost. Costs can vary based on the specific areas of coverage, nature/size of project and location. You can get additional coverage for transportation of property, materials, tools to project site, scaffolding and other temporary structures, removal of debris and water-damage.
The best Builder’s Risk insurance to buy can be purchased for limited terms such as 3 months or 6 months, but ensure that there are no gaps in coverage if projects are delayed.
Whatever the type of renovations you undertake, your existing Homeowner’s Insurance policy may not provide adequate coverage while work is going on or for the completed structure. Talk to an experienced agent at Builders Risk about the best Builder’s Risk insurance to buy. Call us right now at (877) 960-0221.