Kentucky Builders Risk Insurance

When a local adviser is necessary

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.

Kentucky Builders Risk Insurance

If you're starting a building project in Kentucky, the right protection is necessary. While you can have coverage for a structure after it's completed, what about during the process? A builders risk policy can help. 

You can obtain quotes through an independent insurance agent. They have access to several markets, giving you the best options in town. Connect with a local expert for accurate coverage today.

What Is Builders Risk Insurance?

In Kentucky, a builders risk policy will provide coverage for the construction of a building. This insurance is temporary and used during the build-out process and then replaced once completed. Check out what builders risk insurance will cover when under construction.

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

What Does Builders Risk Insurance Cover in Kentucky?

Builders risk insurance is a type of special inland marine policy. It will protect the build-out process and the exposures that go with it. The size and expense of the project will determine the amount of business insurance. It pays for things like the following.

  • Materials
  • Supplies
  • Equipment on site
  • Equipment in transit

Soft costs may be covered under this policy as well. When a project gets delayed due to a covered loss, builders risk can help pay for any added expenses. Loss of use, permits, real estate taxes, and more can be included. 

How Much Is Builders Risk Insurance in Kentucky?

Business insurance premiums vary from person to person. Kentucky builders risk pricing will be dependent on numerous factors. Take a look at what your builders risk insurance cost depends on.

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

Other things that will impact your premiums are the anticipated cost of completion. The carrier will ask what the final project price projections are and then rate your policy accordingly. You can obtain quotes for your exact figures.

Are Construction Workers Responsible for Owning Builders Risk Insurance?

Before starting a construction project in Kentucky, it's key to know who is carrying the coverage. Anyone with a financial interest in the process needs to be listed on the builders risk policy. If you own the property and hire a contractor, you would obtain the builders risk insurance. 

A general contractor will have primary business coverage that includes projects and any items they own used for the build-out. All participants should be listed on the builders risk policy. You will likely want to put the following on your policy.

builders risk / construction

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Do Construction Workers Really Need Builders Risk Insurance?

In 2019, Kentucky had $4,661,744,000 in commercial claims paid. 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 Kentucky?

Materials, construction equipment, and more are left on the job site for months at a time. Theft and vandalism is the number one risk for a project. If your items are stolen, it could delay your build-out indefinitely.

Since builders risk insurance is a type of inland marine coverage, theft is included. The limit that is replaced will be dependent on the preselected amounts of insurance. Every policy will be different and should be reviewed for accuracy.

Builders risk insurance is most commonly used among construction workers. However, if you are building a brand new home or remodeling a current one, you'll need coverage for the process. In 2019, Kentucky had $549,229,000 in homeowners insurance claims paid. If you're not adequately insured, you'll be financially responsible for a loss. 

When you start a home from scratch, the builder usually owns the land and build-out process until closing day. In this scenario, the builder would be the one obtaining a builders risk policy. If you have a financial interest in the home, you may want to be listed as an additional insured. 

How to Connect with an Independent Agent in Kentucky

If you're starting a new project in Kentucky, sufficient insurance should be part of the planning process. There are several ways you can obtain coverage, and one way that makes it a whole lot easier. When you have the help and advice of a licensed professional, you can get the best deal in town.

An independent insurance agent has access to multiple markets so that you have options on policy and premium. When you're unsure how to begin, consult with an adviser. A local expert can be connected with on in minutes.

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