3 Things You Need To Know About Builders Risk Insurance Policy

What is a builders risk insurance policy? Builders risk insurance policy is taken when a building is being constructed. It can be just for the construction alone, or it can include both the construction site, and all the materials stored there and also the materials being brought to the site.

Who is responsible for buying the insurance policy?

It is normally the building owner who is responsible for buying insurance cover. This cover will be for the entire structure plus all the materials, but the land cost will not be included in the policy.

What are the basic coverage provisioned of a builder’s risk insurance policy?

Basic coverage includes accidents like fire, windstorm, lightning. Theft and vandalism is normally covered. Depending on the issuer of the policy earthquake, theft by employees and any damage done by unexpected weather are normally not included. They are called as standard exclusions.

The user must understand that these policies normally exclude poor construction design and if any loss happens due to it. They will not be covered with this type of insurance policy.

With this type of insurance, you will not get coverage for tools and equipments and there is no coverage for any liability. This policy does not include coverage for any accidents happening in the site insured.

However, the client can get contractor insurance coverage extension for various things like debris removal, scaffolding, construction forms and temporary structures.

Like other policies, builders risk insurance policy also has standard deductibles built into the policy and the higher the deductibles you will pay lower premiums.

The buyer of the policy should understand that the policy will become null and void as soon as construction is ended, or it’s occupied.

Anyone on the market for a builder’s risk insurance policy should approach an experienced insurance broker. By using an experienced broker, you will be safe with the kind of insurance required for your site.