Does Builder’s Risk Insurance Provide Disaster Coverage For Roofers?

Disaster Coverage for Roofers is a must-have. But, will it be included with Builder’s Risk Insurance? It’s a confusing point. What is clear is that, across the nation, roofers tend to need more coverage. With 5.4% of all roofing incidents being non-fatal, there’s a need for roofers to be adequately protected against any eventuality.

Cost implications of natural disasters

The Insurance Information Institute collects statistics and data. They found insured losses in the U.S. in 2018 stood at $52 billion. But, that figure doesn’t include non-insured costs. Those are staggering figures and are increasing every year too. 

With $4.2 billion lost because of winter storms and cold waves. Weather conditions continue to worsen. While this means more business for roofing contractors, it also means greater risks. Roofers need to have Disaster Coverage and Builder’s Risk. While natural disasters aren’t covered with Builder’s Risk Insurance, some costs will be absorbed with this coverage. 

What are roofers covered for with Builder’s Risk ? Here is a handy guide to explain Builder’s Risk for Roofers and the impact of natural disasters. 

Natural Disasters and Builder’s Risk for Roofers

Builder’s Risk Insurance won’t protect against most natural disasters. But, you could have additional coverage for natural disasters, such as hurricanes, floods, and earthquakes. Costs will vary considerably. Standard Builder’s Risk policies can cost between 1 and 5% of the construction costs. If you have additional cover, costs will increase. 

Also, roofers may be required to have additional coverage. For example, you’re in an area frequented by tornadoes. Your contract might request additional coverage before any work is allowed to start. Additional Disaster Coverage for Roofers would be required. 

A quick look at Builder’s Risk Insurance

All Builder’s Risk policies will include protection for materials, equipment, and tools. And, this policy also protects a building against a variety of incidents, including:

• Lightning
• Hail
• Storms
• Fire

The type of cover required will depend on the area and scale of the project. More often than not, your Builder’s Risk will cover a portion of the costs. 

Profit Loss 

Natural disasters can cause significant delays. If there are high winds or bad hail storms, it’s extremely dangerous to be working on a roof. That means you lose money. You could end up taking a loss on labor costs. Disaster Coverage for Roofers will help cover a percentage of these losses. So long as this is specified in your Builder’s Risk insurance policy, you’ll be reimbursed a percentage of losses incurred. 

Replacing Lost Materials 

It’s likely all your materials are stored onsite. If you were to lose some or all of your materials, the cost to replace would be very costly. Your Builder’s Risk Insurance will replace your lost materials. Let’s say you suffered a bad windstorm and it caused the shed where the materials were being stored to blow over. You lose more than 75% of your materials. It’s an expense you can’t afford. But, your Builder’s Risk insurance would cover these costs. 

Removing Debris After The Incident

While Builder’s Risk for General Contractors and Roofers won’t cover most natural disasters, they can help with the aftermath. Extensive debris left behind after a natural disaster can cost your business thousands of dollars. You can’t afford to pay for these costs. But, your Builder’s Risk policy can cover the cost to remove the debris from the property you’re working on. 

For example, you were working on a roof, with 95% of the job complete. Gale force winds and a hail storm have caused significant damage to the roof. Half of the roof has been blown off and is now scattered around the work site. There’s further debris from materials around the site too. Clearing the site up will take serious time and money. But, your Builder’s Risk would cover the removal costs. So long as you have this clause specifically included in your policy, you won’t be left out-of-pocket. 

Contamination Removal and Cleanup 

Pollutants can be released into the land and surrounding areas after a natural disaster. If that happens, you may be unable to carry out your roofing repairs. And, you’ll need to look into contamination removal and cleanup. This is something only a specialist can handle. Your Builder’s Risk Insurance will cover the cost of the cleanup. 

For example, a fire has damaged the building you’re working on. The roof needs to be fully replaced, but pollutants are left behind. Disaster Coverage for Roofers would help cover the loss associated with the cleanup and delays to your work. 

Disaster Coverage for Roofers

Millions of dollars are lost each year because of natural disasters. Hurricanes and extreme flooding can wipe millions in a matter of days. With the weather becoming more unpredictable, having insurance remains crucial. While no protection is given for natural disasters, Builder’s Risk will ease the impact after they occur. Debris removal and replacing lost materials can benefit your business after disaster strikes. Your Builder’s Risk allows for that and gives your business that added protection.

Let us help you find the right insurance. Give us a call today 877 960 0221 to get a free quote.