Before a building is constructed, and during the construction process, the property and building materials are not eligible for traditional building insurance. Projects typically aren’t built in a day and remain vulnerable for months until it is completely constructed. For these in-between projects, you need builders’ risk insurance.
As a builder, you know how valuable the raw building materials and partial structures are on a job site. You also know that these materials and partial structures are extremely vulnerable to natural and unnatural disaster elements. Fire, wind, freezing, lightning, along with criminal activity and vandalism, all have the potential to amount to exceptional recovery costs. With builders’ risk insurance, your recovery costs may be partially or completely covered. Repair and replacement costs can be covered, so long as the peril is outlined in your policy and the damage was not a result of obvious negligence and accidental.
Unless specifically added or specified in your personal policy, there are a few events you can expect to be excluded from your insurance coverage. Damages resulting from government activities, mechanical breakdowns or faulty design may be denied coverage. If you are interested in additional coverage, speak with an insurance broker about adding coverage.
Anyone who is making a significant time or financial investment in property construction or renovation may be interested in obtaining builders’ risk insurance. To get builders insurance, you don’t need to have a special designation, you can be a homeowner, business owner, developer, or contractor.
You can’t really go wrong when you purchase builders’ risk insurance. Your tailored policy protects you from some of the most common or uncommon vulnerabilities. In the event you need to make a claim, funds may be provided to sufficiently cover resulting damages.
Stop hoping nothing goes wrong, and instead, protect yourself with a thorough insurance policy. Speak with a Crosbie Job Insurance representative today to talk about your options when it comes to Builders’ risk insurance.