Looking for Builders Risk Insurance?
Builder’s Risk Insurance, which some refer to as Course of Construction Insurance, is a form of commercial property insurance covering a building where the building or insured area is presently being constructed or heavily remodeled.
It can cover just the structure, or also the materials on-site waiting to be installed or transported to the job site.
Whether you’re moving to a new home or business location, or your business regularly sends shipments to clients, you place your property at risk when it leaves your premises. In-transit property insurance provides coverage for shipments by your vehicle or a hired carrier over land or air.
The builder’s risk insurance policy will pay for damages up to the coverage limit in the policy. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, but not including land value).
The construction budget is the best source for determining the appropriate limit of insurance.
Insureds can often purchase Builder’s Risk insurance policies that can vary in terms of three-months, six-months, or 12-months. If the project is not complete by the end of the initial policy term, an extension is sometimes available, but usually only one time.
How much does a Builder’s Risk Insurance cost?
The builders’ risk policy will provide coverage for damage done to the insured structure from a wide variety of events.
Most policies will cover damage from the following events:
- Wind (may be limited in coastal areas)
Read your policy!
You should read your course of builder’s risk insurance policy to be familiar with its limitations and exclusions. Insurance companies typically cover collapse on a limited basis.
Standard exclusions include:
- Employee theft
- Water damage
- Weather damage to property in the open
- Government action
- Contract penalty
- Voluntary parting
- Mechanical breakdown
A critical exclusion that all policyholders should read in its entirety excludes coverage for damage resulting from faulty: design, planning, workmanship, and materials. In some areas, insurance companies allow the purchase of earthquake and flood coverage.
How to get started on your Builders Risk quote