If you’re not familiar with Builder’s Risk Insurance, a type of small contractor business insurance, you may be questioning its purpose if your client’s Homeowners insurance policy is already in place.
So, what is the difference between the two? In a nutshell, Homeowners insurance covers an existing residence while Builder’s Risk insurance protects a home under construction or renovation. Your client’s Homeowners coverage will not protect their home during the course of construction.
Builder’s Risk insurance for your small contractor business protects buildings and structures while they are in the process of being built. It also covers other types of property, including building materials, tools and equipment, fixtures, foundation, fencing, and landscaping (e.g., lawn, trees, and paved areas).
The building materials and equipment covered can either be on the construction site, in storage at a different location, or in transit.
The coverage typically protects your construction or renovation project from property damage resulting from, but not limited to, theft, vandalism, fire, and weather. However, natural disasters, such as windstorms, earthquakes, and floods, are often not included in the policy.
Also offered under Builder’s Risk insurance is soft costs coverage, which helps cover expenses incurred if your project is delayed. By adding on to your policy you can cover your business for project delays such as the COVID 19 restrictions that were imposed on many businesses.
Homeowners insurance, like Builder’s Risk, is a form of property insurance that protects you from financial losses in the event of damage to the building under construction. The policy typically includes:
At Builder’s Risk Insurance company, we help you find insurance for your small contractor business and advise on the correct coverage that best suits your needs and budget. Save time and money by talking to one of our agents today at 877 960 0221. We get quotes from leading insurance carriers.