We can help you find good builders risk policy to insure your property.We represent multiple insurance carriers which can help us to find you the best price on the Builders Risk policy you need to purchase. To help you understand what you would be buying we have answered some common Builder’s Risk Questions.
What is Builders Risk Insurance? Builder’s Risk Insurance is a form of property insurance specifically designed to cover buildings under construction.
Do it cover theft of building materials? Some policies do – so so verify it.
Does Builders Risk insurance cover tools and equipment?Most policies do – so so verify it.
Does Builders Risk insurance include liability coverage? No. Builder’s Risk Insurance is primarily property insurance. Liability coverage is usually purchased under a separate Comprehensive General Liability policy for injuries to the general public or under a Workers Compensation policy to cover workers injured on the job. Usually you will find that the contractor doing the building carries these extra coverages.
Do you cover the replacement cost of the lost or damaged property? Yes. There is no deduction for depreciation on new construction.
How is Builders Risk insurance different from a homeowners insurance policy? Builder’s Risk Insurance can be cheaper than homeowners insurance because it is designed to cover an unoccupied dwelling under construction and will include no coverage for the contents. It is a temporary policy which can have discounted rates depending on its safeguards.
A homeowners policy is a more permanent policy designed to cover an existing home, its contents and the owner’s personal liability exposures. In addition to being more expensive, a homeowners policy would not include some of the special construction related coverage extensions found in a builder’s risk policy.
Is Builders Risk insurance renewable? Yes. Most builder’s risk insurance policies are written on an annual basis and can be renewed if the construction takes longer than 12 months. However, not all carriers will offer this. Having the right carrier when starting is important.
Can I buy Builders Risk insurance after construction has begun? Sometimes, but it is not a good idea to delay coverage. Builder’s Risk Insurance has discounted rates because there is very little property at risk when construction begins. If you wait until the structure is being framed and “dried-in” before you buy insurance, the discounted rates are inadequate for the property values at risk when the policy begins. If your project is more than 20% complete, your application will require special underwriting (ie. increased rates or denial of coverage.) If the structure is more than 50% complete, it may be impossible to find insurance coverage that protects you as the building owner.
My builder and my lender both need to be named on my Builders Risk insurance. Is there an additional charge for this? No. Typically most companies that we use do not charge extra.
A Builders Risk policy is worth the cost as it protects the property for loss. We have seen claims of theft of copper and fixtures as well as claims of fire and other vandalism. Contact us today with any questions you may have when it comes to insuring your business.
Every policy is different and your individual needs and situation will impact the type of policy you will get and the coverage that will be offered.