Oct. 19, 2021
Builder's Risk Insurance protects a construction project as well as all the tools, equipment, and supplies left on the job site. Today, we’re going to make it simple with five facts that will perfectly explain Builder's Risk.
Builder's Risk insurance is a type of construction insurance that protects active projects. This insurance will cover tools, equipment, and supplies left on the job site during an active construction project. Other than Builders Risk, it can also be referred to as course of construction insurance. It's ideal to have during a construction project as it offers protection in case of natural disaster, vandalism, or theft. While it can sound complicated it's really quite simple.
1. Know What Parties Are Covered
As the general contractor you will need to obtain the Builders Risk coverage. However, aside from you, the insurance policy will also cover all insurable interests. These are people that have a stake in the project - for example, owners, developers, banks, investors, and subcontractors. The coverage that Builders Risk provides is good because it created an environment free from finger-pointing.
2. Understand What’s Covered
Once your insurance policy is active, you can expect any actions that thieves, vandals, or arsonists take won’t leave you out to dry. In addition, your site will be protected from all weather phenomena and natural disasters. Course of construction coverage is there to make sure that your project can get back on track without extra cost.
3. Remember What Is Not Covered
Although Builder's risk insurance covers many things, it does not cover everything. As a specialized kind of property insurance, nothing that happens after the project is finished will be covered. The goal of course of construction insurance is to keep the active project safe. If something changes the nature of the project, then a new type of insurance will be needed.
4. Know the Policy Length
When you decide what policy to buy, you’ll want to keep in mind the estimated completion time for the project. In general, you will be able to get a policy for 6, 9, or 12 months. In addition, you will be able to extend your coverage should the construction project take longer than expected.
5. Understand Policy Exclusions
Course of Construction insurance covers almost all of the things that you could think of. However, you should look at your specific insurance policy to see what is excluded in your case. Each policy will be unique and will have certain exclusions based on the project type and location.
Builder's Risk Insurance is not always a legal requirement but many property owners or investors won´t begin a project without it. If you are looking for fast, affordable Builders Risk insurance, then take a look at our site today!