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Builders Risk Insurance Construction and Commercial

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Builders Risk Insurance

Builders Risk Insurance
Builders Risk Insurance

Builders risk insurance is a form of property insurance that covers property owners and builders for projects under construction, renovation or repair. It is similar to normal homeowners insurance but designed to provide insurance during the construction of the house.

Builders risk insurance provides coverage for theft and vandalism, for accidental losses, damage, destruction of property for which the insured has an insurable interest. This property can include an entire building or other structure in the course of construction including the building supplies and materials at the job site to be used in the project. The contractor can be named as an additional insured if requested. The contractor’s equipment and tools are not covered and should be specifically insured by the contractor.

Builders risk insurance does not cover losses occurring before constructionbegins or after the completion of construction. The limit of insurance will equal the full value of the project. Where only a limited percentage of the full project may be exposed to a single loss, an appraisal is conducted to update any value changes.

The builders risk insurance may not include land, landscaping, construction materials in transit, scaffolding, construction trailers, theft of materials from the job site and signs that are not attached to the building. However, you may be able to obtain additional coverage for things not included in the standard policy.

Optional insurance coverage can be requested to include “soft costs” such as financial costs which include additional interest expenses, leasing and marketing expenses, legal and accounting expenses, and miscellaneous carrying cost); delayed opening loss of income, should a delay in completion result in loss of revenue.

The builders risk insurance company will need the following to give you a quote.

  • Cost of project
  • Description of project
  • Copy of contract
  • Type of construction of building, floor, roof, etc.
  • Number of stories
  • Protection (sprinklers, guards, fence, rails, etc.)
  • Exact location
  • Breakdown of phases in the project (beginning and end dates.)