Builder Risk Insurance Policy: Protect Your Construction Projects From 15 Perils

What is Builder's Risk Insurance?

Builder's risk insurance is a type of property insurance that protects construction projects from physical damage during the course of construction. It covers a wide range of perils, including fire, theft, vandalism, and weather damage. Builder's risk insurance is typically purchased by the contractor or owner of the construction project.

What Does Builder's Risk Insurance Cover?

Builder's risk insurance typically covers the following perils:

• Fire
• Theft
• Vandalism
• Windstorm
• Hail
• Lightning
• Explosion
• Water damage
• Collapse
• Earthquake
• Sinkhole
• Landslides
• Debris removal
• Code upgrades

How Much Does Builder's Risk Insurance Cost?

The cost of builder's risk insurance varies depending on a number of factors, including the size and location of the construction project, the type of construction, and the value of the property being insured. According to the Insurance Information Institute, the average cost of builder's risk insurance is 1% to 2% of the total value of the project.

Who Needs Builder's Risk Insurance?

Builder's risk insurance is typically required by lenders for any construction project that is financed. However, even if it is not required, builder's risk insurance is a valuable investment for any construction project. It can help to protect your investment from a wide range of risks and provide you with peace of mind during the construction process.

How to Get Builder's Risk Insurance

Builder's risk insurance can be purchased from a variety of insurance companies. It is important to compare quotes from several different companies to find the best rate. You should also make sure that the policy you purchase provides the coverage you need.

Tips for Getting the Most Out of Your Builder's Risk Insurance Policy

Here are a few tips for getting the most out of your builder's risk insurance policy:

• Make sure that the policy you purchase provides the coverage you need.
• Review your policy carefully and make sure you understand what is covered and what is not.
• Keep your policy up-to-date with any changes to the construction project.
• File a claim promptly if your property is damaged.
• Work with your insurance company to resolve your claim quickly and fairly.

Common Mistakes to Avoid When Purchasing Builder's Risk Insurance

Here are a few common mistakes to avoid when purchasing builder's risk insurance:

• Don't underestimate the value of your property.
• Don't skimp on coverage.
• Don't forget to include debris removal coverage.
• Don't file a claim for every little thing.
• Don't wait until it's too late to purchase insurance.

Conclusion

Builder's risk insurance is a valuable investment for any construction project. It can help to protect your investment from a wide range of risks and provide you with peace of mind during the construction process. By following the tips in this article, you can get the most out of your builder's risk insurance policy.

Additional Information

Here are some additional resources that you may find helpful:

• Insurance Information Institute
• National Association of Insurance Commissioners
• American Insurance Association