Frequently asked questions of the Contractors

In general, the law does not require you to have a Builders Risk Insurance policy. However, if you do not have this policy, most of your clients will refuse to work with you. Your clients highly value this insurance because it is a sign that you will take care of their property.

During a construction project, many types of losses could occur, including financial loss. If you have this insurance policy, you will have some peace of mind. As a builder, buying insurance is one of the best things you can do for your business.

Costs for architects, lawyers, expediters, etc. are not covered, but can be added by endorsement. It is a very good idea to add these, and it is not expensive.

The funds are paid to the lienholder/mortgage company. From here, the funds can be drawn as repairs are made or rebuilding restarts.

Yes, this is possible and it is called a “reporting form” policy. Every month you send in your starts and finishes to the insurance company and they pro-rate your insurance policy.

A few hours. If the project has a lender the policy can be bound in minutes as long as the agent has a check or approval that the policy will be paid out of closing from your mortgage broker. Since there is no real underwriting in that (nothing or very little, if any) most of the major companies are “quote and issue.”

Builders Risk Insurance only provides coverage for property damage. It does not provide coverage for liability, and it's only available for owners. If, as a General Contractor, you need liability coverage, you can consider buying a General Liability insurance policy. The cost of this project is not very high. Every contractor needs different insurance coverage. You can find out more about contractors liability insurance HERE.

Yes, there is coverage for theft, but the extent depends on your particular Builders Risk policy. In some policies, the Builders Risk coverage does not go beyond the amount of the policy.

In other words, they provide limited coverage for theft. Some insurance policies don’t provide any cover for theft. At Builders Risk Insurance, we know that theft is a primary concern for contractors. This is why we make sure that your Builders Risk Insurance policy covers theft. You can learn more about what types of theft and other events builders risk covers here.

BuildersRisk.net concentrates only on ensuring Builders Risk and property coverage over the past 25 years. We have over 15 companies we work with to get you the best value for your money. In contrast, your local agent might have one or two. We give you more options to decide which one suits you best.

In 99% of the cases we write, we can have a policy for you the same day. Give us a chance to compete with your current agent, and we are certain you will be satisfied with your pricing and coverage. You can get an instant online builders risk quote from us in less than two minutes.

You are required to ensure your project up to 100% of the final value. Remember, it's not the market value of the project, but the replacement cost in building it (this value will not include the value of the land). Even if you are the builder or you are the owner and have a contract with a General Contractor who will perform the construction, it should be easy to come up with an estimate for the project. Remember, the cost is not high for the Course of Construction policy.

Several factors determine the cost of a ground-up construction policy. The locations of the construction project and construction materials are two important factors. If the project is 50 miles away from the coast, the cost is $200-$500 per $10,000. If you want to save money, taking a higher deductible can be a good idea.

Short answer, no. Builders Risk policies are known as “One Shot” policies, and there is not a return of premium when the Builders Risk policy is canceled. However, not all, but some carriers offer a minimum earned premium, which means that you will pay a percentage of the policy and if you cancel you will get the rest returned.

Yes, absolutely. You only need to call your agent. Call now.

Yes. It is very easy to set up and we would only need the contact information of your mortgage broker/banker to set it up. The check to the insurance company will be sent out of closing.

If the project is a home, you will need to buy a Homeowners policy when the project is finished. Usually, you can only qualify for Homeowner insurance if the home is occupied. If a house will be unoccupied for an extended period you will want to consider getting vacant home insurance to protect your newly built home.

Once the home is occupied, it is very easy to get insurance, call us for a quote. The price will be inexpensive since the building is new. It is very important to call and change this as soon as possible.

Homeowner insurance offers much more coverage in terms of liability including loss of user, sewer back up, personal property, etc.

In general, the duration of the policy is 3 months up to 1 year. However, if there are no claims during construction, you can renew the policy very easily. If the project goes longer than 2 years, it may be more difficult to renew. Is it time to renew your insurance? We can help.

Many policies in coastal and tornado states do not cover wind and hail, or there is a special % deductible for any claims resulting from these types of losses. This is very important to know. The costs can be very high for this coverage, and it will be mandatory from your bank.

This article explains what events are covered by builders risk policies and what specific weather events are included.

For any insurance, there are terms that you have to adhere to. You have to meet some extra requirements to buy a Builders Risk policy. As a builder, you must have 2 years of experience in your field of expertise.

Also, your project should have an insurable interest. When buying insurance, you have to provide basic information about your project to the insurance agency. One of our agents will tell you what information you need to provide.

Just give us a call now (877) 960-0221 or get an instant online quote here in less than two minutes.