Builders Risk Insurance, also known as Course of Construction Insurance, protects buildings, structures, and vessels during construction. This policy covers the value of ongoing work, including improvements and materials, from the start of the project until it's finished or ready for use.
The insurance applies to new builds, renovations, and specific projects like additions or remodels. It even covers maritime vessel improvements such as bulkhead repairs or restructuring.
As a type of Inland Marine insurance, Builders Risk policies typically cover:
Some policies may also offer limited coverage for structural collapse during construction.
Standard policies often don't cover:
Builders Risk insurance doesn't cover bodily injury or property damage to others. Ask your broker about General Liability insurance for these risks.
Consider asking about an All Risk policy. These usually don't exclude coverage for fire, theft, vandalism, explosion, water damage, testing, mechanical or electrical breakdown, and collapse.
This covers non-material expenses like:
Builders Risk claims are typically settled based on Actual Cash Value.
The Named Insured is usually the contractor or developer, but it could be the building or homeowner if they're responsible for insuring the property during construction. Mortgage holders or lien holders can be added as additional insureds. For newly acquired properties undergoing immediate remodeling, existing structure coverage may be available.
Always consult your broker about your specific policy details. This overview provides a general understanding of Builders Risk or "Course of Construction" insurance.
Remember, every project is unique. Your insurance needs may vary based on the specifics of your construction work. A skilled broker can help tailor a policy that fits your project's requirements and protects your investment throughout the building process.
Don't leave your hard work and valuable materials unprotected. Get the right Builders Risk coverage today and build with confidence, knowing you're prepared for whatever challenges may arise during construction.