Builders Risk Insurance 101
What is Builders Risk Insuance?
Builders risk covers a person or company's property during construction. This property can include the building itself, as well as any materials, fixtures, and/or equipment to be installed.
The policy is often a requirement in construction contractors or construction loan agreements. It is important to note that builders risk covers property only and is not designed to cover workplace accidents, injuries or liability coverage.
When should I purchase builders risk?
The need for a builders risk policy is time sensitive. Most builders or property owners obtain coverage prior to the date of construction. Waiting until after construction begins to obtain coverage can limit the number of insurance companies available to you.
In any case, whether you've started construction or not, Orr & Associates can provide you with a same-day quote and policy.
Who buys builders risk insurance?
The responsible party for builders risk insurance is typically laid out in the construction contract. This can be a homeowner, business owner, contractor or financial institution.
Whatever your affiliation to the project is, Orr & Associates can provide you with a quote that includes coverage for all entities in one policy.
Some examples of the clients we work with:
- Homeowners
- Commercial Building Owners
- Business Owners
- Builders/Contractors
- House Flippers
- Investment Companies
- School Districts
How do I determine the limit of insurance?
Before choosing the right policy or coverage options, it is important to determine a total completed project value.
The total completed value is the total of all costs associated with construction of the covered property including labor, overhead and materials. The total completed value excludes land cost.
Because changes to the value may occur during the course of construction, it is important to get a policy that offers change order endorsements, making the process of changing the value quick and easy.
Which builders risk policy is right for me?
One-Shot Builders Risk
These policies are written for single new construction or remodeling projects. They can be written for a property owner or a contractor.
Reporting Form Builders Risk
These policies are good for contractors or developers with multiple residential or commercial new construction projects.
What kind of losses are covered?
- Property Damage
- Theft
- Vandalism
- Fire
- Materials In Transit
- Back up of sewers
- Debris Removal
- Fire Dept Service Charge
- Lightning
- Arson
- Collapse
- Windstorm or Hail
- Ordinance or Law
- Pollution Clean-up
- Scaffolding re-erection
- Valuable Papers
How do I get a policy?
The quoting process is quick and easey. Fill out our short online form. You will be connected directly with the insurance carrier that best fits your needs based on rates and availability.