ABS Insurance – Builders Risk Insurance Specialists for over 30 years
We are working with the most well-respected carriers in the insurance industry in California.
The policy will provide our builder and remodeler client will be the best possible coverage in state of California and across US.
Builders Risk Insurance Policy
Builders Risk insurance, also called Course of Construction insurance, protects property and construction materials during a construction or renovation.
If you are building a new home or remodeling an existing structure, you will most likely have a builder’s risk insurance policy requested by the bank, which provides you with the construction loan. The party responsible for purchasing coverage is almost always either the property owner or the contractor. In most projects the owner takes responsibility for purchasing coverage.
Who Buys Builders Risk Insurance?
There are several groups of eligible clients for a high risk commercial or residential builders risk policy – all of which can purchase the policy in their name, including the following:
- Homeowners / property owners
- House flippers
- Development / investment companies
- Retail companies
- Architects or engineers involved with the project.
What Builders Risk/ Course of Construction Cover?
Builders risk is designed to protect construction sites from loss and damage.
Builders Risk/Course of Construction insurance covers the property on a construction site when it is damaged or destroyed by fire, wind, vandalism, vehicle collisions or other accidents.
Some policies also cover construction materials stored off-side and cost of cleanup like debris removal.
Premises Liability Coverage for Builders Risk/Course of Construction
All types of General Liability risks are covered by General Contractors and subcontractors’ insurance only.
However, if you are an owner – builder hiring General Contractor and subcontractor’s companies we highly recommend you have Premises Liability Coverage added to your Builders Risk policy.
New Construction – Builders Risk
Every new construction project needs insurance coverage which is designed to provide compensation for all kinds of property and liability losses during the whole course of construction – losses (insurance claims) caused primarily by fire, theft and vandalism.
In most of the new construction projects, the owners of the project must provide visitors with the certificate of insurance as well.
It’s guaranteed that your lenders connected to your project will call or write to you demanding that you provide them with the certificate of insurance , which will have your name being listed as named insureds, also naming them as additional insured.
Sometimes General Contractor or property owners use subcontractors who also must provide the project owners with certificates of their General Liability insurance indicating all the beneficiaries of the required policy before the first day of the project as it is extremely risky to leave the property uncovered.
This will help you to avoid any penalties from lenders who provide you with any type of your project financing. Your loan providers will be always watching your insurance paperwork. Be aware of a couple of inspections of your construction site, whether it is a city permit’s requirement’s issue or water and fire station people. Lately inspectors from different city departments become frequent visitors as well, but you are entitled not to be engaged in conversations with strangers without receiving some notifications in the mail before such a visit.
Remodeling Builders Risk coverage:
If you are planning to increase your home square footage or change its layout, you should plan on getting builders risk insurance coverages.
Even if the renovation requires only a few repairs, make sure you understand the course of construction coverage first.
Construction projects can be risky. If you are a property owner, you will want to make sure that you have got all your bases covered before the first shovel hits the ground.
Please note that your contractors must provide you with a certificate of their General Liability and all their licensing registrations and put your name into their certificate as additional insured.
Course of Construction- Residential and Commercial
We offer both Commercial and Residential Builders Risk Insurance for new and remodeled projects.
Residencia builders Risk – policy for single family dwelling and/or 4 units or less
Commercial builders Risk – any commercial building or apartment building with 5 units and up.
ABS Insurance can handle difficult to place risk as well, such as Fire Zones, non-renewal or a lapsed policy.
Get a Builders Risk Policy Quote
If you are considering a new construction or remodeling project, please contact ABS Insurance & Financial Services for more Information on Builders Risk and Course of Construction Insurance.
Our agents can help you find the coverage you need to protect your property during this process.
We have access to the least expensive, yet high quality Builders Risk Insurance policies offered in California and across the US.
Frequently Asked Questions (FAQ)
Any person or company with a financial interest in the construction project needs builder’s risk insurance
Builders Risk Insurance provides coverage for any construction Project from :
Fire, Theft and Vandalism
Homeowners should always have builder’s risk insurance for any construction or major renovation.
If the project is being financed, the lender will typically require proof of a builder’s risk policy.
No, BR policy is strictly property coverage.
Whoever some Insurance companies offer Premises Liability rider . Which covers slip and fall accidents for visitors.
Some Insurance companies pay only for the Actual Cash Value (ACV)
ACV– coast to replace the damaged property with materials of like kind and quality, without any depreciation.
Others pay for the property Replacement Value (RCV)
RCV – the price that would cost to rebuild /replace property at the current market price.
Replacement Cost coverage – usually results in larger payout, but also more expensive premium.
The cost of builders Risk/Course of Construction insurance policy is based on total complete value of your project
You can expect to pay 0.15 – 0.2% (depends on deductible) of the completed project
A variety of factors are considered when pricing Builders Risk coverage:
- Type of Project
- Coast of the project
- Location of the project
- Timeline of the project
- Square footage of the construction site
- Who is handling the project General Contractors, subcontractors or owner builder?
- Experience of the General Contractors and subcontractors
- Where construction materials are stored .
We offer the most competitive rates on insuring your completed construction and remodeling projects – both residential and commercial.
Claims involving bodily injury or third-party property damage are not covered under a Builders Risk policy and would instead be covered under Commercial General Liability policy.
Common exclusion in Builders Risk insurance policy are the land on which the project is being built or remodeled flood, earthquake, and contractor’s tools and equipment, motor vehicle on the work site.