Constructing or renovating structures are significant undertakings; even a slight mishap or oversight could lead to substantial consequences. Whether considering a new structure being built from the ground up or an addition or overhaul of an existing building, assessing and addressing appropriate insurance needs should be a top priority. Specifically, builders risk insurance may be an exceptionally essential coverage.
What Is Builders Risk Insurance? 
Builders risk insurance is a specialized type of property insurance that can financially protect the assets and interests of stakeholders involved in a construction project. Essentially, these policies are designed to provide coverage when a building is being built or renovated and can be tailored to suit many different situations. Like many types of insurance, policies establish contractual agreements with the policyholder paying premiums in exchange for the right to file a claim for financial aid following covered losses.
When Is Coverage Needed?
Property owners, construction firms, developers and contractors should all consider adequate builders risk coverage to be a top priority throughout the duration of a project. In some cases, multiple parties may be listed as insureds under the same policy, but who is responsible for purchasing and maintaining coverage can vary significantly depending on the circumstances of the job at hand. All details should be worked out before construction begins to ensure adequate coverage.
What Does a Policy Cover?
Builders risk insurance can cover many of the same perils as commercial property insurance, including fires, vandalism, theft and some severe weather events. In response to such perils and incidents, coverage could assist in recouping losses involving the following:
- Buildings under construction
- Temporary structures (e.g., scaffolding and fences)
- Equipment and tools stored at a job site
- Supplies and materials
- Important documents (e.g., blueprints and contracts)
We’re Here to Help
At Simple Lane Insurance Agency, we stand ready to help you secure the right builders risk coverage before beginning your next project. Contact us today to get a free quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.