Missouri Builders Risk Insurance

When you need a local adviser

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 TrustedChoice.com 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.

Missouri Builders Risk Insurance

If you're starting a building project in Missouri, there are some things you should know. Like how to obtain coverage during the process so that you're protected. A builders risk policy can help insure your buildout.

An independent insurance agent will have access to multiple markets for coverage at an affordable rate. They work on your behalf at no cost. Get connected with a local expert for custom quotes.

What Is Builders Risk Insurance?

In Missouri, there are roughly 532,277 small businesses. A builders risk policy will insure the construction process. It is meant to be temporary insurance, and is replaced with building coverage once the project is 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?

A Missouri builders risk policy will protect a project for the length of the construction. The amount of coverage necessary depends on the size of the buildout and materials used. It pays for things like:

There are items called soft costs that can be covered as well. If your project gets delayed, this policy will help pay for any additional expenses. Permit fees, real estate taxes, and more can be included. 

How Much Is Builders Risk Insurance?

Business risk insurance premiums will vary in Missouri. Carriers take into account a lot of factors when figuring your pricing. Take a look at what your builders risk insurance cost depends on:

  • Type of project
  • Details about the project
  • Coverage selected

The cost of completion will affect your premiums as well. The estimated replacement price of the final structure will be requested prior to taking out the policy. This helps the carrier determine how much to charge for coverage.

Are Construction Workers Responsible for Owning Builders Risk Insurance?

When you're starting a new project, understanding who's responsible for the insurance is essential. If you have a financial interest in the buildout, you should be included in a policy. When you own the property itself, you will probably be the one who obtains builders risk coverage. The following should be included in your policy:

builders risk / construction

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Do Construction Workers Need Builders Risk Insurance?

The price of adequate coverage pales in comparison with the financial ruin that could occur without it. In Missouri, $7,615,718,000 in commercial claims were paid in 2019 alone. 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

Although builders risk insurance is geared mainly towards construction workers, you can also consider it as a homeowner. In 2019, $1,060,782,000 in homeowners claims were paid in Missouri. The right coverage is key to avoiding a significant financial setback. Whether you are remodeling a current home or starting from scratch, builders risk can help.

If you are building a home from the ground up, the builder typically obtains the insurance. Once the closing day comes, the builders risk policy ends, and your homeowners insurance applies. Review your options with a trusted adviser for accuracy.

Does Builders Risk Insurance Cover Theft?

When you are doing a buildout, the risk of theft and vandalism is a top concern. Materials and equipment are left out on the job site for weeks and months on end. Your project could be indefinitely delayed if items get stolen.

The amount that can be replaced will be up to the preselected limits of coverage. A builders risk policy will automatically include theft and vandalism on most policies. The size of your project will determine the cost of coverage.

How to Connect with an Independent Agent in Missouri

When you're searching for the best coverage for your project, consider using a licensed professional. Builders risk insurance will help pay for a loss that could halt your project. It is necessary to have proper protection for all the what-ifs.

An independent insurance agent uses multiple carriers for affordable costs. They do the shopping so that you don't have to. Get connected with a local expert on TrustedChoice to get started.

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