How to Protect Yourself from Potential Lawsuits
Wondering What Builder’s Risk Insurance Can Do for You?
This article will give you a brief description of just what exactly Builders Risk is for those who think they may need it.
Who is Builders Risk Insurance For?
Great for people who are:
- Professional builder
- You’re remodeling a home
Will Homeowners Insurance cover my remodel?
While some homeowners insurance policies might be sufficient for some remodelling projects, it is imperative that you find out.
Tips for choosing your homeowners insurance:
- Before you start a remodelling project, you need to make sure there is no gap in your insurance of your house or soon-to-be house.
- Check to see if you need to acquire additional insurance for remodelling projects.
If there is an accident with damages, you’re on the hook without an attorney if you aren’t properly covered.
What Builder’s Risk Covers
A builder’s risk policy can cover two things for both professionals and do it yourself homeowners.
Cost of Damages to the Structure
The first is the cost of damages to the structure or any property on the project.
The second thing a builder’s risk policy covers is called Premises Liability. This is similar to the General Liability that a contractor must carry. Premises Liability covers bodily harm to a third party. For example, if someone were to enter the property and someone slip and fall or sustain some injury while on the property, that could be cause for a lawsuit.
Can I get Insurance after my project started?
There is a bit of a conundrum in the insurance world for those that do not secure a builder’s risk project before or at the very beginning of a project.
What happens is that the regular homeowner’s policy will not be valid, and guess what – the darn insurance company will refuse to insure any project that is already 20% or more underway!
This percentage may vary from lender to lender and state to state, but it is usually twenty. So make sure you are not one of those that get stuck in this situation, by securing this type of insurance at least a week or two before your project begins.
It is permissible to pay for the policy and have it start at a later, known date.
Do I need extra insurance in a disaster area?
Many policies have restrictions and exclusions depending on where you live. If you live in an area known for its storms, it’s important to look over your coverage with your agent. You need to know if wind and flood damage is covered or not, and if there is any extra protection available.
Do I need to talk to an agent?
A good agent can get you to the right policy. Not only that, many agents will take the time to shop around for you so you get the best price.
If you have any questions or would like more detailed information, feel free to comment here or click on my link below.