Builders Risk Insurance

Finding the Best Builders’ Risk Insurance

(Because coverage for your project should be the first thing you do)

builders risk insurance

Whether you’re building a breathtaking skyscraper or a strip mall, every project faces the same kind of problems that can hold up construction. Finishing on time and on budget will keep you and your clients happy. Being well protected during the process is going to get you there.

The best way to get started is before the project has begun and an independent insurance agent is who can help. Your builders' risk insurance can be simple and easy to obtain when working with your local trusted advisor and will aide in the success of your project.

What Is Builders’ Risk Insurance? 

Builders' risk insurance is a policy that will help pay to repair, replace or recover the current value of a construction project. This includes a number of different claim types such as fires, theft, labor costs and natural disasters. 

As a builder or building owner, having the proper builders' risk policy in place could save your project and you thousands of dollars in expenses. 

Finding the right local independent insurance agent that is experienced in the different types of builders' risk policies is key to a project staying on track.

Is Builders’ Risk Insurance Mandatory?

The majority of the time financing is involved in a building project and most financial lenders require a builders' risk policy to be in place prior to any work being performed. 

However, there is the off chance that the project is fully funded by either the builder or the building owner and no proof of builders' risk insurance is required. Having it as part of your practice is a wise decision and usually an inexpensive one at that.

Builders’ Risk Insurance for Homeowners

If you’re building a new home or remodeling an old home, builders' risk insurance should be provided to have proper protection for all parties involved. Most of the time your lender will require proof of builders' risk insurance. If there is not a lender, then the homeowner should be requesting this of their builder.

Having a builders' risk policy in place for your home building project will do two things. First, it will ensure that none of the claims that could arise during a build-out will fall under your responsibility. Second, the policy will also protect the builder from having to come out of pocket to pay for any claims.

You can see that this is a beneficial insurance policy for everyone. Contacting your independent insurance agent to go over details of your builders' risk project is the first thing to do.

Do You Need Builders’ Risk Insurance?

The act of building anything will always come with a list of risks that could delay or derail a project. Having the right builders’ risk insurance can keep the build-out process moving, so you can finish construction without having financial hardships or time delays.

A local independent insurance agent will be able to advise on the correct builders' risk policy for your specifications. Helping to ensure efficiency and completion of your project.

What Does Builders’ Risk Insurance Cover?

A builders’ risk insurance policy protects a construction project and almost everything that’s part of the process as soon as it’s on location, including the actual structure and even building site necessities such as porta potties. 

The biggest difference between policies is what they protect against, like fires, explosions and falling objects.

Builders’ risk insurance policies will fall into three different forms of coverage: basic, broad and special.

  • Basic: Protects against fire, lightning, wind, explosions and more.
  • Broad: Protects against everything included in basic, as well as several additions like falling objects, water damage and a few more.
  • Special: Protects against theft and everything else. 
  • Exclusions and claims not covered: The three forms of coverage will not protect against accidents, injuries and liability risks, as well as certain natural disasters like floods and earthquakes. Also, any peril that is specifically excluded from the policy will not be covered.

How Long Does Builders’ Risk Insurance Last?

On average, a policy will last three, six or twelve months. The policy can usually be extended at least once if the building is not completed. Coverage can continue for up to 90 days after completion or until ownership is transferred from the general contractor or the building is occupied.

Cost Of Builders’ Risk Insurance

The cost depends on the coverage and a number of other factors, one being the end value. Since builders' risk policies are a short-term policy and are finished once the building project is complete, the cost can be pretty minimal.

The larger the build-out the more expensive the policy will be because there is more to insure. Speaking with your independent insurance agent is the best route when figuring cost analysis.

Comparing Builders’ Risk Insurance Quotes

Connecting with an independent insurance agent in your area is the most resourceful way to compare coverage and quotes. Evaluating a number of different builders' risk policies to find the right coverage for your building project is their job. 

They will be comparing policies and quotes from multiple insurance companies to make sure you have the right protection in place.

Working With An Independent Insurance Agent

Your local independent insurance agent will be able to navigate the scope of your building project and research which insurance companies can offer you the best coverage and pricing. 

Most importantly, they’ll be there to help you file a claim. With strict timelines, getting fast claims service will be essential in order to complete your project and stay within your budget.

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