What is builders risk insurance?
Builders risk insurance can be complex and easily misunderstood, as coverage and policies vary from one insurance company to the next. But in a nutshell, builders risk insurance is property protection for your construction project, from start to finish.
It protects the building or structure, as well as any materials, supplies and equipment used in the course of construction. A builders risk policy can be purchased by the contractor, the building or business owner, or even a lender, and may also cover the architect or engineer involved.
Once your project is complete, your builders risk insurance policy would end, and you’d want to consider a commercial property insurance policy to continue protecting your investment.
How a builders risk insurance claim can impact you
Unfortunately, the “unexpected” happens more frequently than we’d like. Especially with construction projects. Having the right insurance can help alleviate the incredible financial burden of a claim.
What is (and is not) covered by builders risk insurance?
Just like every construction project is different, no two commercial builders risk policies are alike. Each policy has limitations, exclusions, and additional optional coverages that you’ll want to be aware of and have customized to fit your needs, before you break ground.
What is typically covered?
Building repair/replacement
Materials and supplies
Tools and equipment
Furniture and fixtures
Outdoor property
Debris removal
Property in transit or off-site
Damages from earthquakes (optional)
Damages from flood (optional)
Soft costs (optional)
What is not typically covered?
Accidental damage (i.e. dropping something)
Damages to someone else’s property
Intentional property damage
Wear and tear
Employee theft
Claims of bodily injury
Work-related injuries or illnesses
