Under construction? You may require this coverage.
Builders risk insurance is essentially a type of property insurance that covers the duration the project is under construction. It is feasible for the property owners to obtain such a policy, but it is more likely that they insist that the contractors obtain this policy.
The primary areas of coverage are fire and hail storm damage. You’ll also be protected against theft, vandalism (but not by your staff), and damage caused by automobiles or aircraft colliding with the structure. Policies are frequently set at a certain proportion of the overall building expenditure to ensure acceptable coverage levels. You should examine how long the insurance is valid for, as it usually does not allow for several extensions of the building timeframe.
This policy will typically cover the building itself, general liability, equipment breakdown, and ordinance and legislation.
This is critical coverage to have whether you are the client or the contractor creating the project. This coverage is most typically obtained by property owners, contractors, subcontractors, lenders, and architects.
It is critical to understand what insurance does not cover. It will not cover certain heightened risks, such as flooding on a coastal site or earthquakes near a fault line, unless clearly stated. It also does not cover worker injuries, so you will still need any legally necessary workers’ compensation insurance coverage.
Do you require builders risk insurance to protect your property while it is being built? Contact us to discuss your property’s specific needs and the coverage alternatives available to you.