Most property owners will require contractors to have Builder’s Risk insurance coverage. The coverage protects against several types of risks to buildings that are being built or renovated. No two policies are alike since every construction project has unique risks. Nonetheless, most Builder’s Risk policies cover property damage or loss due to fire, theft, lightning, vandalism, hail, or explosions.
It’s important to read your policy and familiarize yourself with its precise limitations and exclusions. For instance, wind, earthquake, and flood are typically not covered in coastal areas. Other standard exclusions include:
Your Builder’s Risk insurance coverage generally provides protection for damage done to insured structures under construction or renovation. This includes structures that are both residential and commercial buildings. Temporary structures such as scaffolding, shoring, cofferdams, fencing, and signage are also covered.
Your Builder’s Risk policy also covers labor costs, construction materials, and equipment that are on-site and temporarily stored off-site. Coverage may also include:
If your policy does not cover these, you can purchase coverage extensions to include them.
Typically, building owners, homeowners, or contractors will benefit from Builder’s Risk, as they have a financial interest in the project in question. However, having the property owner as the policyholder is considered best practice. In this situation, if a covered loss causes damage, the property owner makes a claim and reimburses the contractor for damages.
A waiver of subrogation is a standard inclusion in your Builder’s Risk insurance cover. Through this provision, each contractual party waives the right of their insurance carrier to seek compensation for losses from others on the job.
Builder’s Risk insurance coverage for your construction project protects more than just the buildings and structures. It also covers labor costs, building materials, and equipment used to service the building. Our team of experts are here to give you the best advice. Call Builder’s Risk at (855) 480 2252 to get a policy that is right for you.