How To Make Your Construction Insurance Stronger

What’s it going to cost you to make your Construction Insurance stronger?  It costs a contractor from 1% to 5% of the total construction costs to broaden your coverage significantly. Contractors who have realised that their General Liability Insurance works wonders for third party claims, but do little to protect you from financial losses when something goes wrong with the actual structure you’re busy building.

What does more coverage cost?

But, let’s get a better look at the figures. The usual rate is about $200 to $500 per $100,000 in coverage. There are a few factors that your insurance company will take into consideration when quoting, but let’s get to that later. Right now it is important to note that you have to insure your project to 100% of replacement cost.

You’re not basing your coverage costing on the market value of the project. You are required to insure your project to 100% of the final value of rebuilding. This is the replacement cost in building.  This does not include the value of the land.

Before we go further, what’s so special about this coverage?

Get these 5 better benefits

Before you decide anything, let’s look at some of the benefits. Even though the cost is so low, you have to be crazy to pay for construction insurance you just do not need.  With this coverage, you’ll be insured against risk of loss from damage to property under construction. This applies to ground-up construction, or renovation and remodelling projects.

Let’s take it from the top:

• Benefit #1: replacement cost coverage equal to the value of the property lost
• Benefit #2: be reimbursed for a percentage of profit earned as of the date of the loss
• Benefit #3: be covered for theft of materials and equipment up to the amount of the policy
• Benefit #4: coverage for hidden costs like contamination clean-up and removal when a fire or other covered cause of loss occurs at the project site
• Benefit #5: be reimbursed for the damage caused by vandals

Strengthen your coverage with Builder’s Risk Insurance

If these benefits sound important to you, then ask your insurance company for Builder’s Risk Insurance. This insurance is specifically designed to protect the buildings and structures that are under construction. This includes structures that are being built or renovated. Not only does it cover the equipment being used in the construction project, it also covers the costs of construction.

Builder’s Risk Insurance coverage can include protection for materials and equipment added to the property, for instance elevators and HVAC systems. It can also cover labor costs and expenses. And, of course, you get coverage for temporary structures such as scaffolding.

3 Things your Construction Insurance Company should tell you

Here are 3 things you should know about Builder’s Risk Insurance

1. Business Risk Insurance is a per project policy. You’ll take out the policy for a specific construction project.
2. If the project becomes bigger or more costly, you can easily increase coverage.
3. You only take the policy for the duration of the project. Generally, the period of coverage is between 6 to 12 months.  However, it can be renewed if the project takes longer than scheduled.

We’ll assess your Construction Insurance

At BuildersRisk.net, we focuses only on insuring builders risk and property coverage.  And we’re very good at it. When it comes to rates, we have over 15 companies we write through to get you the best value for your money.  In terms of speed, 99% of the time, we can have a policy to you the same day. Give us a call on 877 960 0221. We can help!