What is Builders Risk Insurance?
Builders Risk Insurance, also known as Course of Construction Insurance, is a specialized type of
insurance designed to protect buildings and structures during the construction or renovation process. In
addition, during the course of construction, building materials are often stored off-site and at a
minimum need to be delivered to the jobsite. Builders Risk can be set up to handle that exposure as
well. Coverage for damages caused by events like fire, vandalism, theft, and certain weather-related
incidents are covered by most policies.
A ”good” policy will be a policy that meets all needs of the client and generally speaking, no two Builders
Risk policies are alike. They are tailored to the specific building project and can include other coverage
beyond what we just discussed. For example, consider a bad fire that occurs near the end of
construction on a twelve-month building project. That loss could result in the need to get new building
permits and at a minimum could result in substantial additional interest on a loan acquired for the
construction. “Soft Costs” like these can also be built into a Builders Risk Policy.
Why is Builders Risk Important?
The primary reason Builders Risk Insurance is important is that typically little to no coverage exists in a
standard Property policy for the exposures covered by the Builders Risk policy. During the construction
phase, properties are exposed to a variety of risks that can lead to significant financial losses. Without
adequate insurance coverage, property owners, contractors, and developers could face hefty repair or
replacement costs, delays, and potential legal liabilities.
Here are some common Coverage Highlights:
- Property Damage – Covers damages to the building or structure under construction, including
materials, fixtures, and equipment. - Theft and Vandalism – Protects against theft of building materials and vandalism to the
construction site. In addition, coverage can be issued for property held at a temporary location
and while in transit to the job site. - Fire and Weather Damage – Provides coverage for damages caused by fires, storms, lightning,
and other weather-related events. - Soft Costs – Covers additional expenses such as architectural fees, permits, and financing costs
due to delays caused by covered losses.
- Property Damage – Covers damages to the building or structure under construction, including
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every construction project is unique. Our team will work closely with you to customize an insurance plan that meets your specific needs and budget.
- Risk Assessment: We will conduct a thorough risk assessment of your project to identify potential hazards and recommend appropriate coverage options.
- Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you throughout the claims process, ensuring a smooth and hassle-free experience.
- Expert Advice: With our in-depth knowledge of the construction industry and insurance market, we can provide expert advice and guidance to help you make informed decisions about your insurance coverage.
Get Started Today!
Protect your investment and minimize financial risks with Builders Risk Insurance. Contact our team
today to learn more about our insurance solutions and how we can help safeguard your construction
project.