What Does Builders Risk Insurance Cover?
Typically, Builders Risk Insurance covers the following:
-
Property damage
-
Theft
-
Vandalism (malicious mischief)
-
Fire or lightning
-
Arson
-
Collapse
-
Storm or hail
-
Damage to materials in transit
-
Debris removal
-
Damage from sewer, drain, or sump backup
Clients may choose to add endorsements, such as earthquake insurance, flood insurance, or change order insurance, to expand the coverage.
What is Not Covered by Builders Risk Insurance?
Standard Builders Risk Insurance typically does not include:
-
Workplace accidents
-
Bodily injury
-
Liability coverage (such as claims resulting from slip-and-fall incidents)
If these coverages are needed, a separate Premises Liability policy can be purchased.
Who Needs Builders Risk Insurance?
Clients eligible to purchase commercial or residential Builders Risk Insurance include:
-
Homeowners / Property owners
-
Real estate investors / House flippers
-
Builders
-
General contractors and subcontractors
-
Retail companies
-
School districts
Which Construction Projects are Eligible for Insurance?
-
New Construction Projects: New residential or commercial buildings constructed from the ground up, such as single-family homes, housing developments, office buildings, retail spaces, schools, etc.
-
Renovation Projects: Renovation projects involving structural and functional changes, with an option to include coverage for the existing building structure.
-
Installation Projects: More limited than full renovation projects, involving only the installation of a single piece of equipment or facility. For example:：Residential projects: Installation of new cabinets or flooring；Commercial projects: Installation of awnings or signs.
When Should Builders Risk Insurance Be Purchased?
Builders Risk Insurance should be purchased before construction begins and be effective before materials are delivered to the construction site. Many banks and contract parties require the constructor to purchase this insurance as a condition for loans or contracts.
If a client starts construction without purchasing Builders Risk Insurance, you will need to know the percentage of construction completed and the final completed value of the project to complete the insurance application. If the project is over 30% complete, it may still be eligible for our underwriting program but will require additional review.
What is the Cost of Builders Risk Insurance?
The cost of Builders Risk Insurance typically depends on the project cost and the following factors:
-
Type of Property: Installation projects usually have the lowest cost due to shorter duration and smaller scope. Renovation projects often have the highest cost due to greater risk to existing structures, especially when structural changes are involved.
-
Project Location: Geographic location is a key factor in determining cost. For example, proximity to a fire station, location in a flood zone, or being in coastal and windy areas all affect the premium.
-
Type of Construction: Building materials also influence the insurance cost. For instance, projects built with fire-resistant materials are more durable and lower risk, thus having a lower premium. Wooden-frame constructions are susceptible to fire, potentially leading to total loss, and therefore have higher premiums.
-
Additional Coverage: Whether additional coverages are needed, such as flood, earthquake, or change orders, will also affect the cost of Builders Risk Insurance.
-
Additional Fees and Taxes: Some non-admitted insurance companies (unlicensed insurers) may charge additional fees, such as policy fees and surplus lines tax.
Types of Builders Risk Insurance
Builders Risk Insurance is typically available for residential or commercial new construction, renovation (with or without existing structure coverage), and installation projects.
The types of Builders Risk Insurance offered by different insurers may vary, but generally include the following options:
-
Single policy: For a contractor's or owner's single new construction, renovation, or installation project.
-
Reporting form policy: For contractors undertaking multiple residential and commercial new construction projects simultaneously.
-
Blanket deposit premium: For contractors who build 25 or more new construction projects annually.
-
Blanket installation policy: For trade contractors who perform residential and commercial installation projects.
Get a Builders Risk Insurance Quote
offers a variety of Builders Risk Insurance options to meet the needs of different types of construction projects. Contact us now to get the best protection plan for you.
-
Phone：929-200-7152
-
Address：73 Cuttermill Road, Great Neck, NY 11021
-
wechat：9292007152
