Builders Risk Insurance
What is Builders Risk Insurance?
Coverage is provided for materials, supplies, machinery, equipment, fixtures designed to be a permanent part of the fabrication, erection, installation, alterations , or completion of the project while at the project site, as well as in transit, or at any temporary location.
Builders risk insurance is a form of property insurance that covers property owners and builders for projects under construction, renovation or repair. This insurance is similar to Building and Personal Property coverage; the difference being, this coverage is used to cover buildings during the course of construction.
Builders risk provides coverage on an all risk basis, including theft and vandalism, for accidental losses, damage, or destruction of property for which the insured has insurable interest. This property can include an entire building or other structure in the course of construction including the building supplies and materials at the job site to be used in the project. The contractor can be named as an additional insured if requested. The contractor’s equipment and tools are not covered and should be specially insured by the contractor.
Builders risk policies do not cover losses occurring before construction begins or after completion of construction. Construction must be in progress for coverage to exist.
The limit of insurance may equal the full value of the project. Where only a limited percentage of the full project may be exposed to a single loss, coverage may be available for loss limit.
When the project is finished, an appraisal is conducted to update any changes.
Optional coverage can be requested to include “soft cost” not directly related to construction (financial costs, additional interest expenses, leasing and marketing expenses, legal and accounting expenses and miscellaneous carrying cost); delayed opening loss of income, should a delay in completion result in loss revenue. Flood and quake coverage’s are also available upon request.
If your organization will be engaged in any construction related activities please contact W. A. George Insurance Agency in Chicago, Il for details on obtaining builders risk coverage.