Indiana Builders Risk Insurance

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Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Indiana Builders Risk Insurance

When you're starting a construction project in Indiana, coverage for the process is necessary. You'll want adequate insurance while the structure is being built as well as after. Builders risk insurance can help. 

An independent insurance agent has access to several markets so that you get options on coverage and price. They work on your behalf at zero cost to you. Get connected with a local expert for custom quotes.

What Is Builders Risk Insurance?

In Indiana, builders risk insurance will provide coverage for the build-out process. It will insure your investment against perils before it's finished. Check out what builders risk insurance will cover when a project is under construction:

  • Fire
  • Explosions
  • Lightning
  • Hail
  • Theft
  • Vandalism
  • Acts of God, like tornadoes

What Does Builders Risk Insurance Cover in Indiana?

The size and expense of your Indiana project will play a role in how much coverage you need. The more materials and the higher the final costs of the build, the more coverage will be necessary. It pays for things like:

Builders risk insurance can help if a project gets delayed due to a covered loss. Any added expense will be considered when filing a claim. Loss of use, permits, real estate taxes, and more may be included. 

How Much Is Builders Risk Insurance in Indiana?

Your personal or commercial insurance costs in Indiana will vary depending on several items. Carriers look at personal data and outside elements when setting rates. Take a look at what your builders risk insurance cost depends on:

  • Type of project
  • Detail of the project
  • Coverage selected

Another thing that could impact your premiums is the anticipated cost of completion. The carrier will ask for the estimated replacement cost of the finished structure. This will help them gauge how much coverage you'll need in full for a project.

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Are Construction Workers Responsible for Owning Builders Risk Insurance?

Anyone with a financial interest in the buildout should be listed on the builders risk policy. When you own the property but are hiring a contractor to do the work, you will typically have a policy for your exposure, and the contractor will have one for anything they purchase.

When you use a general contractor, they will usually have primary coverage with a blanket amount or listed protect coverage for all buildouts. You will probably want to put the following in your policy in Indiana:

Do Construction Workers Really Need Builders Risk Insurance?

In 2019, $6,780,466,000 in commercial claims were paid in Indiana. If you want to minimize your risk, proper coverage is needed. Builders risk insurance is necessary when you are working on these things:

  • A residential construction project
  • A commercial construction project
  • Remodeling your house
  • Remodeling your commercial property

Does Builders Risk Insurance Cover Theft in Indiana?

Theft and vandalism are a huge concern for a project. When you have materials kept out in the open, they could easily be damaged by such incidents.

Builders risk insurance is a type of inland marine policy and will include theft and vandalism. The amount it covers will depend on your project's size and the value of the materials used. Review your policy for accuracy and limits of protection.

Although builders risk insurance is geared mainly towards construction workers, homeowners can also consider this policy for certain situations. A builders risk policy can apply to a new home build or a renovation. In Indiana, $1,003,810,000 in homeowners insurance claims were paid in 2019 alone. If you don't obtain adequate coverage, you'll be financially liable for a loss.

If you are building a new home, the builder will typically own the land and project up until the closing day. When this is the case, they will carry the builders risk policy. Again, if you have a financial interest, you may want to be listed as an additional insured.

How to Connect with an Independent Agent in Indiana

Insurance in Indiana can be tricky if you're not a licensed professional. The right policy for your project can mean the difference between whether or not it is completed. Builders risk insurance can help.

When you work with an independent insurance agent, you'll have your pick of coverage and premium. They access several carriers at once so that you have choices. Connect with a local expert on TrustedChoice in minutes.

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