Building insurance is essential in the risky business of construction. Some insurance is mandatory. General Liability covers you if you are sued for negligence, and Workers Compensation looks after your employees in the event of an accident. What about property insurance? Builder’s Risk Insurance protects you from possible financial loss due to many events that are common on building projects. Let’s talk about what this insurance is and why your business needs it.
What is Builder’s Risk Insurance?
Builder’s Risk is specialized property coverage. It is “specialized” because it applies to certain types of building projects and is for property replacement.
What types of construction are eligible for Builder’s Risk Insurance?
This building insurance is specially for the construction of new buildings and the renovation, refurbishment and restructuring of existing ones. It is available for projects from new multi-million developments down to a house renovation for a homeowner.
What coverage does it provide?
Builder’s Risk Insurance is customized for your business or project so there is no “standard” coverage per se. There is coverage that is typical to many policies, and these include fire, theft, vandalism, and damage by high winds. There are many other risks your particular project could be facing and could be included in your project. Our agents at Contractors Liability can assist to ensure you get the right coverage for your venture.
Are there any exclusions with this building insurance?
Each policy is different and there may be exclusions. For example earthquakes and floods may be excluded, or faulty workmanship. Discuss the coverage you need with one of our agents. They are experts and will talk you through your policy options to make sure you know what is included and what is excluded.
Does Builder’s Risk Insurance have a term limit?
This building insurance is also known as Course of Construction Insurance. It has a commencement date, which should be aligned with the start of the project. You may choose a policy for 3 months, 6 months or a year. The policy is terminated when construction is over and the building can be occupied, or when the term ends, whichever is sooner. If the project is running over time, it can possibly be extended depending on your policy.
What does it cost?
A Builder’s Risk policy is between 1 and 4% of the total project cost. There are many factors that influence the price. The value of the project and its location, the materials to be used, whether it is a new building, and if it is residential or commercial. Our agents will first make sure the right coverage is included in your policy, and will then find you the lowest cost for it.
Does your business need Builder’s Risk Insurance?
Builder’s Risk Insurance is property replacement coverage. This can range from the replacement of tools and equipment in the event of theft on site, to the replacement cost if the entire building was destroyed. It is the cheapest way you can transfer the risks you face to another party. It means you can manage your exposure to financial loss and ensure you make a profit on your project.
Where can you get your building insurance?
Speak to us at Contractors Liability. We will get you the right coverage from an A Class carrier at the best available price. Call Contractors Liability on 866-225-1950 get the protection your business needs.