What types of projects are builders risk policies available for?
Builders risk policies can be purchased for large construction projects. They might be used when building residential developments, multifamily residential buildings, commercial or industrial buildings, as well as major additions or remodels of these buildings. Policies are often also accessible for public works projects as well, and sometimes for significant hardscaping or landscaping undertakings.
Policies are less likely to be purchased for the construction, addition, or remodel of a single house. If coverage is wanted when working on a single-family home, an experienced insurance agent might be able to source a policy.
What kinds of perils are covered by builders risk policies?
Builders risk policies may cover an array of perils, possibly including water damage, weather, vandalism, theft, fire and other risks. Named perils policies typically list the perils they cover, while open perils policies generally cover perils except those listed as exclusions. Open perils policies usually provide more extensive protection.
To understand exactly what a specific policy covers, contractors should review the policy with a knowledgeable insurance agent.
How can builders risk coverage be obtained?
Builders risk coverage can be acquired in several ways, depending on a contractor’s other insurance needs and a project’s details. The coverage is available through standalone policies, but most purchased it as part of a package policy.
Less often, builders risk may be added to a single coverage through an endorsement. An endorsement integrates specific protection onto a policy, for a relatively nominal increase in premium.