What Does Your Builder’s Risk Insurance Policy Cover?

Your Builder’s Risk Insurance Policy provides only one line of coverage, but it is the kind of coverage every contractor needs. Often called Course of Construction Insurance, this kind of insurance protects your interest in materials and equipment needed for the job from physical loss or damage.

Let’s take a closer look at what is covered by your Builder’s Risk Policy.

1.Damage at Your Construction Site

Damage coverage is the primary benefit of Builder’s Risk Insurance. This damage can be caused by natural disasters and weather events such as hail, lightning, tornado, hurricane or fire.

However, in coastal and tornado states, many policies do not provide for hail and wind. To an extent, it depends on where you live and the location of your construction site also. Usually, basic Builder’s Risk Coverage doesn’t cover flood damage.

2. Theft and Vandalism

It can become a challenge protecting your equipment and materials on your construction site. If you fall victim to malicious vandalism, your Builder’s Risk Policy may provide coverage for the loss.

There are different policies regarding coverage for theft. In some policies, it cannot go beyond the amount of the policy. There are even some policies that don’t even provide coverage for theft. Before investing in your Builder’s Risk Policy be sure to get advice from your insurance agents.

3. New Construction

Your Builder’s Risk Insurance Policy will only provide your construction company certain types of construction projects. This includes:

• Installation of permanent fixtures,
• New construction
• Remodeling of interior fixtures
• Restructuring

As a general constructor working on a new construction project, you can benefit from Builder’s Risk coverage during construction.

4. Remodeling

Remodeling is one of the types of construction projects covered by your Builder’s Risk Insurance Policy. Builder’s Risk covers losses that a standard insurance policy does not.  Builders can benefit from this insurance when renovating an office building or residential structure. House flippers, homeowners, and contractors with insurable interests benefit from this insurance policy.

5. Restructuring

Adding a staircase, removing load-bearing walls, or reinforcing the foundation of a building can be referred to as restructuring. Builder’s Risk coverage can give you some peace of mind during restructuring. This insurance is an extra layer of protection for builders during a restructuring project.

Get the Right Builder’s Risk Insurance Policy for You

Many things can go wrong when you’re working on a construction project. In these situations, the financial and legal coverage provided by your insurance can save your business. However, all Builder’s Risk Insurance Policies are not the same. Reading the fine print of any insurance policy is important. Get advice from our experienced insurance agents. Call (877) 960-0221