There are many types of Construction Insurance policies to choose from. One of the most popular remains one of the most misunderstood. Contractors usually shop for Builder’s Risk Insurance based on the price and not coverage. This can lead to heavy losses due to inadequate protection. How can you avoid ending up in such a situation? In this article, let’s answer some of your most common queries about Builder’s Risk Insurance.
Builder’s Risk Basics
There is no denying that Builder’s Risk Insurance is economically attractive. Premiums are only between 1% to 5% of your project’s cost. However, if you don’t choose the right Construction Insurance policy for you, it could end up costing you dearly.
We, at Contractors Liability, have 20+ years of experience in Construction Insurance. We provide tailored Builder’s Risk Insurance policies that meet your needs and protect your business. Our trusted industry experts always help you make the right decision.
4 Frequently Asked Questions About Construction Insurance
What is covered by Builder’s Risk Insurance?
Builder’s Risk Insurance is specialized coverage that protects the building under construction as well as the equipment being used to build it. Your Construction Insurance policy will also cover:
- Debris removal
- Contamination cleanup
- Loss of valuable documents such as blueprints
- Delays or loss due to building code changes.
How much will Builder’s Risk cost?
The cost of your project will be the single biggest determining factor for your insurance cost. Most insurance providers charge anywhere between 1% to 5% of the total project cost. However, there are a few other factors that you should consider as well. Risk increases as the length of your project increases. Meaning that Construction Insurance costs will be higher for long-term projects. Construction in areas that are prone to natural disasters will also lead to higher insurance premiums. Projects that use frame structures will also be more costly because such structures are more susceptible to wind and fire damage.
Who should buy Builder’s Risk Insurance?
All new construction and most major renovation projects require Builder’s Risk Insurance. In addition to the builder, other parties exposed to potential losses may also have an insurable interest. However, there is no need to buy separate insurance. One policy will typically include the owner, general contractor, as well as the subcontractors.
When does coverage begin and end?
Builder’s Risk Construction Insurance usually takes effect on the date when all contracts are signed. However, terms can be altered to choose a particular date. As far as the end of coverage is concerned, your policy will specify the conditions when coverage ends. Typically, this will happen when the building is handed over to the other party or put to its intended use.
Construction Insurance Experts
Now you know more about Builder’s Risk Insurance, you are ready to begin protecting your business. However, every construction project carries unique risks. Our experienced agents at Contractors Liability will help you get that unique policy for your project. Get started by giving us a call on 888-676-0923.