South Dakota 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.

South Dakota Builders Risk Insurance

The right coverage for your structure is essential to avoiding a major financial setback. In South Dakota, if you are starting a building project, you'll want coverage not only for the finished product but for the process. A builders risk insurance policy can help protect your build-out. 

Fortunately, an independent insurance agent works with a network of carriers so that you have options. They do the shopping on your behalf, saving you time and money. Connect with a local expert to get started. 

What Is Builders Risk Insurance?

In South Dakota, a builders risk policy will supply coverage for the construction of a building. It can help pay for any loss that occurs while your structure is being built. Check out what builders risk insurance will cover when under construction.

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

What Does Builders Risk Insurance Cover?

You'll want your South Dakota project insured with proper protection. Many things can go wrong when the build-out begins, and it's good to know what your policy will cover. Builders risk pays for things such as the following items.

  • Materials
  • Supplies
  • Equipment on site
  • Equipment in transit
  • Delays in project scope
  • Additional expenses that arise
  • Loss of use
  • Permits
  • Real estate taxes

How Much Is Builders Risk Insurance?

Your commercial insurance policies in South Dakota will vary depending on several risk factors. Carriers look for personal data and outside elements when rating your policy. Take a look at what your builders risk insurance cost depends on.

  • Type of project
  • Detail of the project
  • Coverage selected
  • The anticipated cost of completion

Are Construction Workers Responsible for Builders Risk Insurance?

If you own the property and hire a contractor to do the build, you both will need coverage in some form. A general contractor will have their own commercial policies to account for their portion. In South Dakota, anyone with a financial interest should be listed on the builders risk policy. You will likely want to put the following on your policy.

  • Subcontractors
  • Lender
  • General contractor
  • Architect
builders risk / construction

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Do Construction Workers Need Builders Risk Insurance?

In 2019, South Dakota had $2,227,477,000 in commercial insurance claims paid out alone. It's essential to be proactive in obtaining coverage not to have a huge financial loss. 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 South Dakota, theft and vandalism can hit a job site at any time. When a project is underway, it is not uncommon to leave materials and equipment out in the open. A builders risk policy will cover your exposure to theft and vandalism if a claim arises. It will help replace and repair the following.

  • Building materials
  • Items left out on a job site
  • Equipment

In 2019, South Dakota had $93,309,000 in homeowners insurance claims paid. If you're remodeling or building new, your homeowners insurance won't cover the process. In order to have adequate protection, you'll need to carry a separate policy.

Builders risk insurance will help insure your home's project. If you have a new home built, the general contractor usually obtains coverage because they own the land and materials until closing day. If you have a financial interest, you may ask to be listed as an additional insured on their policy.

How to Connect with an Independent Agent in South Dakota

When you're searching for adequate protection in South Dakota, a licensed adviser can help. If you're preparing for a building project, insurance should be on the top of your list. Builders risk insurance can cover your build-out from start to finish and is usually required by a lender.

An independent insurance agent will have access to several carriers so that you get the best coverage for an affordable price. Since they do the shopping on your behalf at no cost, you'll save a lot. Connect with a local expert on to get started today.

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