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Builder's Risk Insurance
Contact us for Builder's Risk Insurance for residential, commercial, and industrial structures
A Builders Risk Policy is purchased before construction is started and is specifically used to protect the owner of the building to be built. Contact us before you break ground to get this type of insurance. When done right, you will enjoy the simplicity of buying one policy that covers the entire course of construction without needing to go back to the insurer to ask for more coverage. The discount factor applied to the policy is another good reason to arrange early for your Builders Risk insurance coverage before the project begins.
If you are reading this after you have already started you project we can still help you with a slightly different policy. Please use this link to see information on the Renovation or In Course of Construction Insurance policies we sell.
Builders risk insurance policies may be used for property owners who will by building a home, residential, farm, or business use building. When you call let us know the use of your finished building up front so we get your call to the correct department. 607-843-8860
Please keep in mind that not every insurance company or agency offers the products we sell. We have refined out product offerings for years now. The result is many different insurance companies products now available through our insurance agency. For the types of products we discuss on this page you can save time by calling us first.
What is Builders' Risk Insurance?
Answer: Builders' Risk Insurance is generally a policy that would be purchased before construction starts. Policies may be designed to cover the cost of the building(s), materials not yet installed, and liability for the named location(s). The end cost of the project is used as the base for calculations of premium. Because of this there are discount factors applied to the policy, since the exposure to the insurance company will not be for the full amount of the building at the start of the policy. Special care needs to be taken to correctly build a policy for this type of risk. We suggest you contact us at 607-843-8860 or email@example.com well before the start of construction so we may provide you with pricing for this early in the planning process so you have the costs of this unique and valuable insurance included in the total cost of your project. You will need to buy Builders Risk Insurance before you begin construction.
Builders Risk insurance policies may be used for 1 to 4 family houses that are new construction and are commonly called Personal or Residential Builder's Risk Insurance Policies. These include out buildings for personal use on a residential premises.
For buildings with business uses, Commercial Builder's Risk Insurance is the most appropriate choice.
If you have already started on your project and your building is partially completed you need Property Under Renovation Insurance.
NOTE: Many Personal or Commercial Insurance Policies will not cover a building in the course of construction or undergoing major renovations.
What does Builder's Risk Insurance cover?
Answer: Builders Risk Insurance policies generally cover the following. Not every insurer offers every coverage option.
Building - Only the building under construction, that is listed on the policy, for the amount that is actually completed in the building (completed value builders risk), even though the policy shows the completed project coverage. Keep records to show the current value of the building. Yup, this may be it on many Builders Risk Policies.
Additional Optional Coverage (short list)
Uninstalled Building Material
Theft of Building
Medical Benefit Reimbursement
Additional causes of loss may be acquired is there something special you are looking for?
What does Builder's Risk Insurance not cover?
Builders Risk Insurance policies do not cover everything. They are named peril policies. Therefore if you have a specific cause of loss you are concerned about you will want to see that thing listed in the covered causes of loss.
These policies do not cover the risk you take selling the finished project or of getting it occupied by tenants.
Coverage for the contractors failures, such as workmanship or completing the job on time are not covered. You are best served by a variety of insured or assured guarantees from the contractors insurance and bonds. You do well to make sure that you are named and covered by your contractor's policies.
Many times liability insurance is not covered and especially is this the case if the project is of a commercial nature. However is some cases, when the construction is for single to four family residences, liability protection may be offered on residential construction projects.
If you want our insights on some of the best practices you may use to protect yourself, your project and your investors you may hire us as insurance consultants. We will provide you guidance for a fee.
Frequently Asked Questions
Is all risk insurance and builder's risk insurance the same thing?
Answer: No... Oh, you want more of an explanation? Builder's Risk insurance is greatly different from "all risk" insurance for many reasons. The most specific difference in that builder's risk policies have named causes of loss that would be paid for versus a policy that may be called incorrectly all risk would cover almost any cause of loss. If you would like more details on what a builder's risk policy would specifically cover in your case we invite you to call us to begin to develop one.
Can you buy builder's risk insurance on an existing structure?
Answer: No... You want more of an explanation? Builder's Risk insurance can only be purchased before a structure exists of has been started. For insurance on a building in the course of construction or a building needing a renovation you need Renovation Project Insurance.
All prices, programs, features, underwriting, offers, representations and companies shown in this site are subject to change without notice. We may add or discontinue a company or program or an insurer may change underwriting criteria or product line availability without notice to us. With the insurance industry constantly changing we may not be able to keep the site up with the latest information. For the up to date info please contact us. All insurance applications are always subject to current underwriting rules, acceptance of the insurer and adequate premium paid.
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