Understanding Builders Risk Insurance

With a builders risk policy, property owners and contractors can protect their property financially while it is being built or renovated. The builders risk insurance policy was created to provide protection against certain perils that construction sites might be exposed to. These perils include:

- Fire-Vandalism

- Theft

- Lightning

Hail!

www.accessinsurancecompany.net You can purchase Builders Risk Insurance on many properties and projects including:

- Residential remodeling projects

Commercial property construction projects

- Residential New Construction, Single Home and Multi-Home Projects

Limitations and terms of coverage

Builders risk insurance doesn't provide the same level or permanent protection from perils as traditional home insurance policies. Builders risk insurance is typically approved for short periods and can be underwritten.

Property owners and contractors need to consider the estimated value of the structure when setting the limits for builders' risk insurance policies. This includes the cost of all materials used on the jobsite as well as labor costs. If the job site is destroyed completely, it will result in a loss of investment in both labor and materials.

What Builders Risk Insurance Doesn't Cover

Builders' risk insurance does not cover injuries or accidents that occur on the jobsite. This policy does not provide personal liability benefits. You should supplement it with proper liability coverage. The policy does not provide any benefits for employees who are hurt on the job. This benefit is provided by a workers' compensation policy. Builders' risk insurance does not guarantee the contractor's work or cover damages due to contractor negligence.

Builders insurance doesn't cover certain acts of nature or man.

- Earthquake

Flood

- Other water damage

- Mud and landslides

- Employee theft

- Acts in war

- Government action such as worksite closures due to code violations

- Contractual violations

What is the beginning of coverage?

Builders insurance policies only cover losses that occur after construction has begun and before it is finished. To put it another way, coverage must be in effect while construction is ongoing.

Optional Coverages

There may be additional perils depending on where the property is located and how many projects are covered by builders insurance. You can add additional coverage:

- Loss of important documents, such as blueprints

Certain risks when traveling with materials meant for the job

Flood

Earthquake and other earth movements

Save Money on Builders Risk Insurance

The risk of fire is one of the greatest risks on a construction site, whether it's for new or renovation. A fire hydrant or fire department close to the site will help you save money on your insurance.

Multiple quotes from different companies can help you get builders insurance premium savings. Our agency works with many insurance companies and can obtain multiple quotes to make sure you get the most cost-effective policy possible for your project.