Builder’s risk insurance is a policy that is designed to provide coverage for buildings while under construction. It covers the contractor’s interest in materials at the job site before they are installed, materials in transit intended for the job, and the value of the property being constructed until it is completed and accepted by the owner. The policy may be written to cover the whole structure for new construction or the cost of remodeling and renovation projects. It can also be used to cover specific projects, such as a new room addition, a deck, or a remodeled bathroom.
Builder’s risk insurance usually is in the name of the contractor or the property developer, but it could also be in the name of the property owner if he is responsible for insuring it while the property is under construction. Both commercial and residential construction sites might be covered under a builder’s risk insurance policy.
There are also additional built-in coverages for the specialized needs of a particular construction project, whether it’s commercial or residential. Often, insurance companies request a certain level of experience of the builder before they provide insurance coverage for their commercial sites. Usually, an experience level of 2-3 years in commercial construction is desired.
A builder’s risk insurance policy is essential for people who have a financial interest in property during the course of construction, either commercial or residential. It doesn’t mean only new construction, but also any remodeling or renovation project.
If any damage to construction material occurs in transit or during storage, then this cost could also be covered under a builder’s risk insurance policy.
Witkin Scott Associates, Inc offers free, comparative quotes on Builders’ Risk Insurance from multiple insurance carriers so you can get the best possible rate.
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