Builders Risk

Builder’s Risk Insurance offers coverage for projects under construction, renovation, or repair which are typically excluded from standard building coverage. This coverage is available to both property owners and building contractors. This property insurance provides coverage on an “all risk” basis during the construction process including: theft and vandalism, accidental losses, damages, or destruction of property deemed valuable.

The coverage can comprise an entire building or specific structures during the course of construction. This includes building supplies and materials at the job site used during the building process, intended materials in transit, and the property value until final completion. The contractor can also be requested to be an additional insured, but the contractor’s equipment and tools would not be covered and needs to be specifically insured by the contractor himself.

Builders risk policies only include losses during the construction process and not before or after, and actual construction must take place in order to qualify for this coverage.

The limit of the policy is normally equal to the full value of the project. When the project is finished, an appraisal is conducted to update any value changes, and the policy should be converted to more standard building coverage.

Additional policy options can be added. For example, “Soft costs” are requested optional coverage that isn’t directly related to the construction process (i.e. financial expenses, added interest costs, marketing and leasing provisions, accounting and legal expenses, and assorted carrying costs). Other optional coverage choices are delayed opening loss of income (should a building delay directly result in revenue losses), and flood and earthquake damages.

Contact us today if you’d like to discuss your Builders Risk Insurance Needs.