Construction zones can be dangerous, not only for people but also for the physical property itself. Whether you are crafting new construction or making some updates and renovations to an existing building, even the best contractors may sometimes make mistakes, and accidents can happen. In scenarios like these, having a robust builder’s risk insurance policy can protect you from being on the hook for the cost of repairs and replacements incurred during a construction project.
The right type of risk insurance for you will depend on your specific situation, but it is important to learn more about how this type of insurance policy can work for you before you make a decision.
What Does Builder’s Risk Insurance Do?
Builder’s risk insurance protects projects during the course of construction. Property damage can occur during construction, whether a building is being constructed from the ground up or something simpler, like an add-on or hallway.
If a fire destroys the construction progress or important materials are stolen, a client with a builder’s risk insurance policy can be protected from having to pay to remediate these issues.
Do I Need Builder’s Risk Insurance?
Builder’s risk insurance is valuable for anyone who is working with construction, but it is not limited only to the party who will own the construction once it is done. Builder’s risk insurance is also for contractors and their subcontractors and even lenders. Even if you are only tangentially related to a construction project, be sure to evaluate whether you could suffer negative financial consequences without risk insurance coverage.
Common Coverage Options For Builder’s Risk Insurance
At its most basic, a builder’s risk insurance policy will typically cover the materials and installation labor for permanent improvements to a project. However, more comprehensive policies will also include helpful provisions that safeguard your financial security in the event of unexpected events. If the construction is not completed on time due to direct physical damage, builder’s risk can help to cover the lost profit from a delay in opening, or additional soft costs such as interest expenses.
Depending on the exposures of a project, additional coverage extensions may also be purchased at various coverage amounts, such as demolition / increased cost of construction as it relates to an ordinance or law, debris removal, existing property (for renovation projects), materials in transit, and materials in storage.
Find The Right Risk Insurance Policy For You
Whether you are unsure if you need builder’s risk insurance or you would like to purchase a comprehensive policy that leaves you feeling secure and protected, trust the specialists. The professionals at Atlas Insurance Agency can craft an insurance program that is suited for the specific type of project that you are working on. Reach out by calling (808) 400-6680 to learn more or request a quote online to get started on securing a policy.