A builders’ risk insurance policy is essential for people who have a financial interest in property construction, either commercial or residential, and not just new construction, but also any remodeling or renovation project.
This type of insurance provides coverage for buildings 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.
Additional coverage is available for the specialized needs of commercial and residential construction projects. Insurance companies often request a verified level of builder experience before they provide coverage for commercial sites (typically, two to three years is required). There are add-on options to cover earth moving and damage to construction material in transit or during storage.
Builders’ 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 responsible while it’s under construction.
Contact us for more information, or request API’s free, no-obligation comparative quote from multiple insurance carriers to get the best possible rate.