Do I Need Builders Risk In Addition To Homeowners?
Homeowners policies aren't always enough.
Homeowners that are planning construction or renovation on their existing project should carry coverage that will protect against losses arising during the course of construction. Typically, homeowners insurance will not be sufficient to cover such losses.
The added benefit of having a builders risk policy is that it will minimize your chances of ever having to file a claim against your homeowners policy (which can prove costly at renewal time). For a quote or to speak with an agent, please call 800-858-1315.
So what's the difference?
While both policies can provide coverage for the existing structure, builders risk insurance will provide coverage for the the owner's insurable interest in materials, fixtures and/or equipment to be installed during construction and many of the soft costs associated with a construction project.
While policies will differ from one carrier to the next, and vary based on endorsements and policy exclusions, standard homeowners policies and builders risk policies are designed to cover different exposures. Here are some examples of construction related coverage that you would find in a builders risk policy that are typically not found or very limited in homeowners insurance:
- Fire Dept Service Charges
- Transit
- Outdoor trees, shrubs, plants and lawns.
- Expediting Expense
- Debris Removal
- Backup or overflow of sewers
- Pollutant Cleanup
- Scaffolding and construction forms
- Temporary storage
- Reward for job site crimes (up to $25,000)
- Interest of subcontractors
Added Benefit of Builders Risk Insurance
The added benefit of having a builders risk policy is that it will minimize your chances of ever having to file a claim against your homeowners policy (which can prove costly at renewal time).
For a quote or to speak with an agent, please call 800-858-1315.