What Does Builder’s Risk Insurance Cost?

Builder’s Risk Insurance cost is a small price to pay now to protect your contractor business for protection when things go wrong. In January, footage of a building that was under construction collapsing in Trinidad, Washington, went viral.

As a general contractor, you know that things can go wrong at any time. As we all know by now, it is vital to protect yourself when these disasters happen. For as little as 1 – 5% of the construction costs, you can have protection against the costs of accidents like this.

The 3 contributing factors to Builder’s Risk Insurance cost

1. A trusted insurance company will make the course of construction insurance an easy one for you as a general contractor. Property replacement insurance focuses only on the project building at 100% replacement value and not market value. This also excludes the value of the land too. The ballpark figure of anything between 1 – 5% of the project costs, can be fine-tuned with the following factors.
2. The length of the project will influence your cost. A project of fewer than 90 days is cheaper to insure due to the shorter time frame in which things can go wrong, like onsite fires. The type of construction is vital to consider. Some structures are more susceptible to damage from natural elements or fire.
3. The location of the project might push your insurance costs upwards. Certain high-risk areas, like those along the coast where hurricanes are a reality, will need more expensive insurance cover.

You can discuss exclusions in the policy with your insurance agent, but take note that this might be a high risk choice. Thus, make a well-informed decision when choosing this option.

How to recover from the unexpected

Consider the scenario that your project became the footage of a viral video. Yet you were properly insured, then these will be the beneficial ways that your insurance covers you.  

• Not only will it cover your investment in the building material already used, but coverage will be for the replacement of the entire building.
• In such an event, general contractors stand to lose greatly on profits that keep your business afloat. Proper insurance will take care of the lost profits too.
• Before rebuilding can take place, the debris removal is an expensive clean-up process. Your builder’s risk insurance takes care of that too.
• In cases where contamination might have taken place, the clean-up process is even more pricey. Your insurance will foot the bill of this expensive costs.
• The damage might even include lost paperwork or expensive electronics. The cost to replace or restore this falls under your Builder’s Risk insurance.
• You might need to store your material and equipment off-site for a certain period until construction can go ahead again. A proper builder’s risk insurance policy takes care of these extra costs.

Best rates for best Builder’s Risk coverage

When you look at what’s at stake, builder’s risk insurance cost is worth every dollar. This doesn’t mean that you must pay top dollar. You can get good, cheap Builder’s Risk insurance from reputable insurance agents. Find out more from our experienced agents at Builders Risk Insurance. Give us a call at (877) 960-0221 for the best rates.