Understanding Builder’s Insurance
During any type of construction project, there are inherent risks and unknowns that may create additional costs. Instead of hoping that every facet of the project goes well, builders risk insurance is a form of coverage that offers peace of mind for unexpected damage.
What Is It?
This type of insurance is designed to protect property, whether an individual or a company, during the construction period. While every policy is different, and every project has different needs, it offers coverage for building damage, as well as for stolen or damaged materials, fixtures and equipment. The exact coverage depends on your specific policy, but this insurance typically also covers storms, extra expenses and soft costs.
Who Should Get It?
There are many people or groups that are eligible for this type of policy, both for residential or commercial development or renovation. From architects to contractors to homeowners and investment companies, a policy can be obtained in their name. In some cases, obtaining this insurance may be required to adhere to city building codes.
What Policies Are Available?
In general, there are policies for three types of construction: ground-up new, remodeling and installation. Depending on the project, there are different varieties that take into account a specific location or a blanket policy, the latter of which is often complex but allows for multiple projects under one policy.