Building a new structure, whether it’s a residential home, commercial building or any other type of structure, is a big investment. It’s important to protect that investment with the right insurance. Builders Risk Insurance, also known as course of construction insurance, is a specialized type of insurance that is designed to protect the structure and materials during the construction process.
What is Builders Risk Insurance? Builders Risk Insurance is a type of property insurance that covers the physical structure and materials during the construction process. This includes coverage for damage or loss due to natural events such as fire, wind, hail, and lightning as well as theft and vandalism. It also covers any additional costs that may arise due to delays or interruptions in the construction process.
Why do you need Builders Risk Insurance?
The construction process is inherently risky, and many things can go wrong. Builders Risk Insurance provides financial protection in the event that something does go wrong. Without this coverage, the cost of repairs or rebuilding could be financially devastating.
Who needs Builders Risk Insurance?
Builders Risk Insurance is typically purchased by the property owner or developer, but it can also be purchased by the general contractor or subcontractor. It’s important for any party involved in the construction process to consider purchasing this type of insurance to protect their financial investment.
Coverage and Limitations Builders Risk Insurance policy can be tailored to specific needs, However, it typically covers the cost of rebuilding or repairing the structure in case of damage from covered perils, additional living expenses if the structure becomes uninhabitable, and the cost of debris removal. These policies typically exclude flood, earthquakes, and war damages. Therefore, It’s important to understand the coverage and limitations of the policy before purchasing it.
Building a new structure is a significant investment, and it’s important to protect that investment with the right insurance. Builders Risk Insurance is a specialized type of insurance that is designed to protect the structure and materials during the construction process. It provides financial protection in the event of damage or loss due to natural events, theft, and vandalism. This coverage is a must-have for anyone involved in the construction process, so make sure to consider it before starting your next project.