Builders Risk Insurance

Posted by on April 26, 2016 in Feature Stories, Insurance, Insurance News, Uncategorized, Updates | Comments Off on Builders Risk Insurance

Builders Risk Insurance

Builders Risk Insurance

Business Insurance Builders Risk Insurance

Developers, Builders, Contractors take on big risks every day.  Necessary risks come with the territory when you are creating real structures from ideas and plans. But why take on unnecessary risk? Smart Builders and contractors insure their buildings under construction with appropriate builders risk insurance.

Builders Risk Insurance

Builders Losses can add up quickly.

Billions of dollars in losses

  • Commercial property losses caused by wind and thunderstorms $30 billion 2011
  • Property Damage caused by Fires $14.8 billion
  • Estimated insured property losses caused by US Catastrophes 2012 $35 billion


Builders Risk Insurance

What is builders Risk Insurance Builders risk insurance also called course of construction insurance is a type of property coverage for buildings under construction, as well as all of the materials and equipment used in the project.  You will typically need to purchase coverage for 100% of the anticipated construction costs.  The coverage can be especially important if you are working with materials that are prone to damage. Or if you are working in an area prone to Storm Damage like Louisville KY .

Your Builders Risk Insurance Covers :  Your policy can be structured to cover the following ( Every insurance policy is different, consult your own policy for specific coverage, this is an example only)

  • Property Damage : Includes construction material, heavy machinery equipment temporary structures fencing scaffolding construction signs.
  • Theft:   Some builders risk insurance policies will cover theft of building materials (for an additional premium)  You may need a gated job site to qualify for this coverage.
  • Labor Costs and earned profit:
  • Perils of nature and man made disasters

Some coverage  will be part of a basic policy and other items will need to be added for an additional premium. You should carefully review coverage before buying the policy. Dick Watts Insurance can help you create a customized insurance policy. As an independent insurance agent, we can give you access to multiple companies and policies.


What is Excluded from the Builders Risk Insurance

Note that these policies do not cover accidents and injuris at the workplace or liability risks. They will also  exclude certain acts of nature such as earthquakes and floods.

How long does the insurance Last? How much does it cost?

Normally  the builders risk insurance lasts three, six, or 12 months, and you can usually extend the term at least once if the building is not completed. The builders risk insurance ends when the building is completed or occupied.  A builders risk policy will normally cost one to three percent of the total construction budget, depending on the insurance coverage and insurance company.  Dick Watts Insurance Independent Insurance Agent can help you sort through different builders risk insurance coverage offers.

Be sure to ask about the Co-Insurance clause to determine the percentage of co-insurance required. Co insurance clauses can lower your overall premium, but impose a penalty on you if you file a claim. The penalties are triggered when the reported value of the property is less then the actual value of the property under construction. So make sure the details of the coinsurance are clear.  Readjust your property values as construction progresses.

The Advantage of working with Dick Watts Insurance Independent Insurance Agent

It is important to have an experienced independent insurance agent on your team to help you minimize your course of construction project.  We can provide you with access to multiple insurance companies and builders risk insurance policy options and advise you on how to customize the options to your specific construction project. We can also assist you with your other commercial insurance requirements at Dick Watts Insurance Builders Risk Insurance Louisville KY