Builder's Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Builder's Risk insurance.
The Basics of Builder's Risk Insurance
Builder's Risk Insurance, also known as course of construction insurance, is a unique property insurance coverage designed to help protect buildings under construction from certain property damages. Builder’s risk insurance helps protect you and interested parties through every phase of construction. Builders' risk is a crucial part of every construction project. Having the proper coverage limits is essential to helping protect construction projects.
During construction, buildings and structures are subject to various risks. For example, a building may catch fire or sustain severe damage due to high winds while under construction. Buildings and structures under construction may even fall victim to other force majeure. A course of construction insurance policy can help financially protect you from these potential losses.
Builder's Risk Insurance is a temporary property insurance coverage that protects a structure or building throughout its construction period. Builder's Risk helps protect anyone with financial interests in the project from property damage and other covered losses. This type of business insurance not only minimizes risks but allows you to recover from occurred losses.
Builder's Risk Insurance is essential to every construction project. Builder’s risk insurance comes with multiple benefits, including;
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A policy can help ensure the project is completed on time and within budget by covering the cost of repairs or replacement in the event of a loss.
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It helps pay the astronomical cost of replacing supplies and materials, clearing the damaged debris, and cost of restarting your construction project should an accident occur.
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Builder’s risk insurance provides property damage coverage to existing structures during renovation projects.
Key Coverage Provisions
All construction projects are unique, and so is every builder's risk insurance policy. Generally, a Builder's Risk Insurance policy helps protect your current construction or renovation project from property damage due to;
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Weather Events such as rain, hail, or wind can damage your structure while under construction. Builder's Risk Insurance can help cover damages caused by non-severe weather events.
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Fire Damage can cause severe damage to an unfinished structure or building materials during your ongoing construction project. Builder's Risk Insurance coverage can help protect you from repair or replacement costs caused by fire damage.
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Vandalism Builder’s Risk Insurance can help protect your ongoing construction project from financial distress due to acts of vandalism such as; destroyed fixtures, broken windows, or graffiti walls.
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On-site Theft can be devastating to a project's timeline and budget, depending on the severity. Builder's Risk insurance can help with replacement costs of stolen materials on construction sites.
Builder's risk insurance can also help cover materials stored on and off-site if damaged, destroyed, or lost in transit. A Builder’s risk insurance policy can also help protect your construction project from soft costs that occur due to delayed construction. A typical builder’s risk insurance policy helps cover valuable documents, blueprints, and schematics associated with the covered construction project.
What’s Typically Not Covered?
When you're constructing a new building or renovating a property, it's important to have adequate coverage in place to protect your investment. Builder's risk insurance is designed to provide coverage for damage that occurs during the construction process. However, some things are typically not covered by Builder's Risk Insurance, such as:
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Generally, extreme weather events such as floods, hurricanes, or earthquake damage are excluded unless the policy specifically states so.
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Typically, your Builder's Risk Insurance will not cover damage to an unfinished building resulting from materials, faulty design, or construction.
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In most cases, Builder's Risk Insurance doesn't cover the damage that natural disasters such as earthquakes, tornadoes, or floods could cause to your incomplete structure. Adding a severe weather endorsement to your insurance policy could help cover damage costs in these events.
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Builder's Risk Insurance isn't typically designed to protect employees at a construction site from illnesses or injuries related to working on a construction or renovation site. In such scenarios, a Worker's Compensation Insurance can help cover any partially lost wages or medical costs due to occupational illnesses and work injuries on a construction site.
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Builders' risk insurance usually doesn't cover damage to tools and equipment. Instead, a Contractor's Tools and Equipment Insurance policy provides damaged tools and equipment coverage.
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