Builders Risk Insurance

Developers, builders and 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 risks? Smart developers, builders and contractors insure their buildings under construction with appropriate builders risk insurance.

Construction professionals are busy doing what they do best – building. That's why an Insurance Station agent can be a valuable part of your team. Our agents have access to coverage from many insurance companies. We can quickly and easily compare policies and rates and help you select the builders risk insurance quotes that fit your needs. Find out what makes sense for you by contacting an Insurance Station agent today.

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 percent 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 that is prone to certain types of severe weather. It is also important coverage that protects your investment from unforeseen risks.

What Builders Risk Insurance Covers

Your builders risk insurance policy can be structured to cover the following:
• Property damage: Includes construction material, heavy machinery and equipment, temporary structures, cribbing, false work, fencing, scaffolding, construction signs and landscaping
• Theft: Some builders risk insurance policies will cover theft of building materials; to get this coverage, you may need to have a gated job site
• Labor costs and earned profits: Replaces labor costs, income and expenses
• Perils of nature and man-made disasters: Hurricanes, fires, blizzards, severe hail storms, lightning, black outs, broken water mains
• Other damages: Negligent workmanship, flawed materials or design. Some coverage will be part of a basic policy and other items will need to be added on. It is important that you work through the details of a policy beforehand. An Insurance Station agent can help you create a policy customized to the project you are working on. We can give you access to multiple companies and policies and direct you to the companies who are strong in the areas you are most concerned about insuring.

What Is Excluded from a Builders Risk Insurance Policy?

These policies do not cover accidents and injuries 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 insurance lasts three, six or twelve months, and you can usually extend the term at least once if the building is not completed. The coverage ends when the building is completed or occupied.

A builders risk policy will typically cost one to three percent of the total construction budget, depending on the coverage and insurance company. An Insurance Station agent can help you sort through the different coverage options and give you an exact builders insurance quote.