Your Shield in Construction Risks with Our Builder's Risk Insurance!

Property Coverage: Builder’s risk insurance covers damage or loss to the insured property, including the building under construction and materials on-site. Covered perils usually include events such as fire, theft, vandalism, wind, and certain natural disasters.

Time-Limited: This type of insurance is specific to the construction period and ceases once the project is finished. The coverage is meant to protect against risks during the construction phase.

Named Perils: Builder’s risk policies are often “named perils” policies, meaning they explicitly list the events or risks that are covered. Commonly covered perils include fire, theft, lightning, wind, and vandalism.

Additional Coverages and Exclusions:

1. Exclusions: Some common exclusions may include damages due to earthquakes, floods, employee theft, or intentional acts of the insured.
2. Soft Costs: In addition to covering physical damage, builder’s risk insurance may also include coverage for “soft costs.” These are expenses that may continue even if construction is temporarily halted due to a covered loss, such as architect fees, permits, and interest on construction loans.
3. Parties Insured: The policy may cover various parties involved in the construction project, such as the property owner, contractor, subcontractors, and sometimes lenders.

It’s important for property owners and contractors to carefully review and understand the terms, conditions, and exclusions of a builder’s risk insurance policy to ensure that it adequately meets the specific needs of the construction project. Construction projects inherently involve risks, and builder’s risk insurance helps mitigate the financial impact of unforeseen events during the building process.