Builders Risk Insurance

Finding the Best Builders’ Risk Insurance

(In case your job site turns into a total dumpster fire)

Greg Lewerer | June 26, 2018

It doesn’t matter if you’re building a breathtaking skyscraper or a beige-bricked strip mall, every project faces the same kind of dumb problems that can hold up construction. So if you want finish on time and on budget, protecting your real-life Lego pieces should be priority Number 1.

Our independent agents know the ins, outs and all-arounds of builders’ risk insurance and will help you find the protection you need to push your project past the finish line.

What Is Builders’ Risk Insurance? (A.K.A. Course of Construction Insurance)?

In a well-built nutshell, it’s a policy that will help pay to repair, replace or recover the current value of a construction project, including labor costs, if there’s damage due to a number of causes (pending coverage).

Is Builders’ Risk Insurance Mandatory?

If financing is involved, most likely. If not, it’s up to you, but you’d have to have an intervention-worthy gambling addiction to not have it. The stakes are too high-to skip or skimp on coverage.

Builders’ Risk Insurance for Homeowners

If you’re constructing a stadium, builders’ risk is a no-brainer, but if it’s a new house or light remodeling, coverage might be trickier. A start-from-scratch home will most likely be a solid “Yes,” but renovations to existing structures will depend on how much value you’re adding to the home. Best ask an agent for suitable options.

Why Do I Need Builders’ Risk Insurance?

The act of building anything will always involve an industrial-sized dumpster of bad things that can damage, derail or delay the project. Having the right builders’ risk insurance can keep your structure from crumbling to the ground, so you can finish construction without going bankrupt… or getting yelled at.

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 those pungent-smelling porta potties. 

Porta potties on the job site.

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… except for whatever is on the policy’s exclusion list, which is a small collection of unthinkables you wouldn’t be covered for.
  • Big bad things 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. So, those pesky perils will need separate policies.

Cost of Builders’ Risk Insurance

The cost depends on the coverage and a number of other factors, one being the end value. If you’re building a drive-thru taco stand on the outskirts of town, you might only pay $200 a month, but if you’re constructing a monumental skyscraper in the heart of a city, you might be looking at $5,000 a month.

How Long Does Builders’ Risk Insurance Last?

Typically, a policy will last three, six or twelve months, and 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.

Comparing Builders’ Risk Insurance Quotes

Our gifted agents will review your needs and help you evaluate the builders’ risk Insurance coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection in place. So, you’ll have that going for you.

The Awesome Benefits of an Independent Agent

Independent agents will walk you through a handpicked selection of sweet builders’ risk insurance policies. Not only that, they’ll cut the jargon and clarify the fine print, so you know exactly what you’re getting.

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. Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?