What Is Customized Builder’s Risk Insurance?
May 6, 2020
The Builder’s Risk Insurance Policy That Protects Your Profits
May 25, 2020
Building under construction insurance protects your business from financial loss caused by unforeseen events. Hail is a classic example. No amount of planning can prevent it occurring. When it happens there is nothing you can do to prevent it damaging your building or equipment. It can result in delays to your project, especially if you need to make repairs or get additional materials. And all this hurts your finances.
What is Building under Construction Insurance?
Building under construction insurance is Builder’s Risk Insurance. It is property coverage that protects you from many risks. Building under construction insurance means when a risk materializes, you have coverage that will pay for it.
Known as Course of Construction Insurance, your policy commences when you start to build, and it finishes when the building is completed and occupied. The policy has a time limit, and is usually for a 3, 6 or 12 month period.
Yes, you can get hail coverage!
Hail is a great example of why Building under Construction Insurance is essential to your project:
- You transfer the financial risk of hail damage to another party
- If hail damage occurs your policy covers repair and replacement costs
- Your coverage could include the costs incurred due to the resulting delays
Who can get Builder’s Risk Insurance?
This insurance coverage is specially for the construction of new buildings or the refurbishment of existing ones. Typical parties that need building under construction insurance are developers, general contractors, builders and subcontractors. Anyone with a financial interest in the project can be covered by Builder’s Risk Insurance so this also includes homeowners, lenders or building owners.
What should your building under construction insurance include?
Builder’s Risk Insurance is customized for your project which means no two policies are exactly alike. When you buy your policy you assess the risks you are exposed to, and then include coverage for these risks.
A policy generally gives you coverage for property loss caused by lightning, hail, fire, explosions, theft and vandalism, and more. You can also get coverage extensions for things like wind or flood damage if you are building in a location that is prone to these risks.
Can soft costs be included in your coverage?
Builder’s Risk Insurance can give you coverage for soft costs. We can use the example of hail to explain this. A hailstorm could create significant damage to your project. Your policy would pay for the repair of the damage and it could also cover the soft costs like the loss of retail income as a result of the building delays.
How to select your insurance carrier
Builder’s Risk Insurance is specialized coverage and it is customizable to your project. It makes sense to deal with a company that has years of experience and a good reputation for delivering to customers’ expectations.
Get your Building Under Construction Insurance from Builder’s Risk.net
With more than 20 years in the industry at Builder’s Risk.net we can assist you with your policy. Don’t let hail and other hazards threaten the success of your project. Speak with one of our expert agents and get the protection you need. Call Builder’s Risk at 877 960 0221.
