Picture this: you're in the middle of a construction project when suddenly, something goes wrong. Maybe a storm blows through and damages your equipment, or perhaps an accident causes some structural damage. Whatever the case may be, you're now facing repairs that could cost you thousands of dollars. That's why it's so important to have builder's risk insurance. This type of insurance protects you from any potential damages that may occur during the construction process. So whether your project is big or small, make sure you have the coverage you need in case something goes wrong. You'll be glad you did.
Builder’s risk insurance is a type of property insurance that covers builders, contractors, and property owners for damages or losses that may occur during the course of construction. This type of insurance is typically used to cover the costs of repairing or rebuilding property that has been damaged as a result of construction work. Builder’s risk insurance can also cover the costs of materials and equipment that have been damaged or lost during construction. builder’s risk policies can vary significantly in terms of coverage and cost, so it is important to compare policies and choose the one that best meets your needs.
Damage from the following events will be covered by most policies:
- Fire
- Wind (may be limited in coastal areas)
- Theft
- Lightning
- Hail
- Explosion
- Vandalism
- Vehicles/Aircraft
- You should read your course of builders risk insurance policy to be familiar with its limitations and exclusions. Limited coverage is provided for collapse.
Standard exclusions include:
- Earthquake
- Employee theft
- Water damage
- Weather damage to property in the open
- War
- Government action
- Contract penalty
- Voluntary parting
- Mechanical breakdown
- An important exclusion which should be read in its entirety excludes coverage for damage resulting from faulty: design, planning, workmanship and materials. Earthquake and flood coverage may be purchased in some areas.
