Builder’s risk insurance is an important coverage for any homeowner or business owner. It can help to protect you from financial loss if something goes wrong during your construction project. In this blog post, we will discuss the key benefits of builder’s risk insurance and explain what you need to know in order to get coverage. We will also provide a few tips on how to reduce your risk and make sure you are taken care of in the event of a claim.
What is Builder’s Risk Insurance?
Builder’s Risk Insurance is a specialized type of property insurance that covers buildings and other structures under construction. It provides financial protection in the event of loss or damage to any materials, fixtures, or equipment used for the construction project due to fire, wind, hail, theft, vandalism and more. Builder’s risk insurance can also cover losses caused by weather-related events such as heavy rains or snowstorms. This coverage may be purchased by either the owner of the building project (owner’s policy) or by the contractor responsible for completing the project.
Types of Builder’s Risk Insurance
Builder’s Risk Insurance has few policies option depending on type of project and client needs.
- Single project –
For residential and commercial property owners and general contractors with one new construction, remodeling and repair or installation project.
- Reporting policy –
For General Contractors who is preforming two or more commercial or residential new construction projects. The coast of the project up to 3 Million.
- Blanket premium policy –
Residential and Commercial projects around 25 or more builds for one year.
Each type of builder’s risk insurance has its own set of requirements and limits. It’s important to consult with an insurance advisor before starting a project, to make sure you’re covered for all potential risks.
What Are the Benefits of Builder’s Risk Insurance?
Whether you are the client or the contactor building the project, this is very important policy to have. This policy includes coverages for building/dwelling itself, theft, vandalism. This policy can also include equipment breakdown and premises liability, construction material prior to installation.
If a construction site burns down, not only is that construction work lost, but the entire project will have to be done over again. Builder’s risk insurance provides protection for contractors’ overhead and profit in the event they must start their job all over again.
Conclusion
If you are in the business of building, there is a good chance you have heard of builder’s risk insurance. In this article we will outline what it is and what it covers, as well as some of the key things to consider if you are thinking about purchasing it. Hopefully this information will help you make an informed decision and guide your path to securing the protection that your business needs.
Our team and ABS Insurance and Financial Services will be happy to help you with the best possible quote with the right coverage and price in order to get the protection you need and deserve.
Please call us at 1800-448-9243.
