Builders Risk Insurance: A Must-Have

Your last newsletter discussed the benefits of Building Ordinance insurance. If you’re planning to build on your property or adding to an existing structure, a related policy – Builders Risk – can protect you from losses during construction, helping make sure that you finish the project.

The amount of coverage should reflect the total value of the completed structure (including the costs of material and labor, but not the value of the land). In most cases, the construction budget will be the best source for calculating this amount.

The policy is usually written for a period three months, six months, or 12 months. If needed, the term can be extended once.

Builders Risk covers damage to the insured structure(s) from a wide variety of causes, ranging from natural disasters (wind, lightning, hail, and lightning) through accidental events (fire, explosion, or vehicle accidents) to human activities (such as theft and vandalism). Coverage usually also includes:

• Fire department service charges for saving or protecting property from a covered cause of loss.
• Removal of debris from property damaged by a covered loss.
• Losses from the backup of sewer and drains.

Most policies exclude losses from earthquake, flooding employee theft, mechanical breakdown, contract penalties, war, government action, or faulty design and workmanship. You might be able to add coverage for some of these exclusions – such as earthquakes and flooding – if the building is in an area that’s prone to one or both of these natural disasters.

Bear in mind that this policy does not provide Liability coverage for accidents or injuries on your property.

We’d be happy to tailor a comprehensive Builders Risk product that fits your needs – and budget. Just give us a call.