Service Details

Builders Risk insurance provides coverage for property under construction or renovation, safeguarding against financial losses resulting from damage or destruction during the building process. It covers structures, materials, and equipment on-site, as well as temporary structures like scaffolding and fencing.

Builders Risk insurance typically protects against risks such as fire, theft, vandalism, and certain natural disasters like windstorms or hail. This insurance is essential for construction projects to ensure that investments are protected during the building phase, reducing financial risks for contractors, developers, and property owners. Once construction is complete, the coverage usually ends, and the property may then be insured under a different policy, such as a standard property insurance policy.

Frequently Asked Question

Q: Who typically purchases Builders Risk Insurance?

 

A: Builders Risk Insurance is typically purchased by property owners, contractors, developers, or project sponsors involved in construction projects. It provides financial protection during the building phase.

Q: When does Builders Risk Insurance coverage begin and end?

 

A: Coverage usually begins when construction starts and ends when the project is completed and ready for occupancy or when the property is sold or transferred to a new owner.

Q: Does Builders Risk Insurance cover liability claims?

 

A: No, Builders Risk Insurance typically does not cover liability claims for bodily injury or property damage to third parties. For liability coverage, separate insurance policies such as General Liability Insurance are necessary.

Service Included

• Property Under Construction Coverage: Protects the structure, materials, and equipment on-site from damage or loss due to covered perils like fire, theft, vandalism, and certain natural disasters.
• Soft Costs Coverage: Covers extra expenses from construction delays, like architect fees and financing costs, reducing financial losses due to project interruptions.
• Equipment Breakdown Coverage: Protects against damage to construction equipment due to mechanical or electrical failures, minimizing downtime and repair expenses during construction.
• Debris Removal Coverage: Pays for debris removal after a covered loss, including cleanup and disposal costs, facilitating a smooth recovery process and efficient site clearance.