Builder's Risk Insurance Information
Builders risk insurance can be essential coverage for real estate development and construction projects. It can help financially protect against property damage during construction, covering risks like fire, theft and vandalism. Understanding the importance of builders risk insurance can be crucial for project success and financial stability.
What Is Builders Risk Insurance?
Builders risk insurance is a tailored form of property insurance that can offer financial protection for buildings during construction. It can be customized to address the unique risks each construction project and business faces. Without it, your organization could be financially liable for costly incidents, potentially disrupting the project and impacting your company’s reputation and future prospects.
Who Needs Builders Risk Insurance?
Builders risk insurance is an essential consideration for anyone involved in construction projects. This includes contractors, developers, property owners and lenders. Whether you’re building a new structure or renovating an existing one, having this insurance can help safeguard against unexpected losses during construction.
What Is Covered by Builder Risk Insurance?
Builders risk insurance may help financially cover the following incidents:
- Fire
- Lightning
- Hail
- Explosions
- Theft
- Vandalism
Each builders risk policy may have unique features, so it’s essential to customize it based on your project needs. Some policies also cover soft costs, such as lost sales, rental income and additional interest on loans, if property damage causes delays.
Builders Risk Insurance Exclusions
Standard exclusions in builders risk insurance may include the following:
- Improper work techniques
- Earth movements (e.g., sinkholes and earthquakes)
- Wear and tear
- Acts of terrorism and war
- Employee theft
- Rust and corrosion
- Mechanical breakdowns
- Damage due to faulty design or planning
It’s essential to review your specific policy terms to understand your coverage.
Where to Get Builders Risk Insurance
Contact MTN Insurance Services today to discuss your project’s insurance needs.