Are you comparing quotes for Building Under Construction Insurance? You’re right: it makes good business sense to get the best coverage for the cheapest rate. The value of a Builder’s Risk policy is clear, but you don’t want to pay more than you have to. In this article we will look at how the cost of a policy is determined, and how you can get your policy for as little as possible.
The cost of a Builder’s Risk policy is generally between 1% and 5% of the total cost of the project. This will be calculated taking the following things into consideration:
This is the single biggest contributor to the cost of your policy. Builder’s Risk Insurance is property replacement coverage so it will naturally cost more to insure a bigger project than a smaller one.
Building under construction insurance is customized for your project. There are some inclusions that many policies have, but your policy must be tailored for you. Typical inclusions are for losses due to theft, fire, and vandalism. There are many other lines that can be included.
It is important to note that the right coverage is important. It is counter-productive to have many exclusions so that your policy costs less. It would mean you would not be insured for events that could easily happen on your project.
A Builder’s Risk policy has a commencement date and an end date. It is usually for a 3, 6 or 12 month period. The longer you require the policy, the higher the cost will be. There is more chance of things befalling the project the longer it continues.
Some locations carry higher risk than others. For example is your location prone to hurricanes, or flooding, or earthquakes? This will impact the price of building under construction insurance.
A commercial project carries different costs to a residential project. Similarly the construction material will play a difference. A timber building is more at risk from fire and wind than a masonry one, for example.
These are some of the factors that go into the cost of your building under construction insurance. The track record of your business, your years of experience and your reputation can also impact the cost of your policy.
The right coverage is most important with your policy. At Builder’s Risk.net we get you the lowest price possible. We do this in 2 ways:
Our agents at Builder’s Risk.net are ready to assist you. We will get you at least 3 quotes so you can compare and get the best rate for the coverage you need. Call Builder’s Risk at 877 960 0221 and pay less for your insurance.