If you are a builder, contractor, or developer, then you know that there are many risks associated with your work. One way to protect yourself and your business from these risks is by purchasing builder’s risk insurance. This type of insurance can provide you with peace of mind knowing that you are covered in the event of a loss. In this blog post, we will discuss three benefits of builder’s risk insurance.
Your equipment is protected
One of the main benefits of builder’s risk insurance is that it can protect your tools and equipment. If your equipment is lost, stolen, or damaged, builder’s risk insurance can help to cover the cost of repairs or replacements. This can be a huge financial relief, especially if you have expensive tools and equipment.
If you’re in this business, you’ve most likely invested a lot of money in the tools you need to get the job done right the first time. Oftentimes, you’ll have no choice but to leave some of your equipment unattended at a job site. This can be a huge liability for you if you aren’t properly insured.
The new build is protected
Another benefit of builder’s risk insurance is that it can protect your new build. If there is damage to the property during construction, builder’s risk insurance can help to cover the cost of repairs. This type of insurance can also provide coverage if the project is delayed due to weather or other unforeseen events.
Builder’s risk insurance can give you peace of mind knowing that your investment is protected. You’ve worked hard to get to this point and you don’t want anything to set you back. This type of insurance can help make sure that your project stays on track and on budget.
The specifics of what’s covered on your new build depend on your policy. However, most policies should include coverage for property damage, theft, natural disasters, man-made disasters, and soft costs. Below is a list with examples of each of these.
- Property damage- this is coverage for construction materials like scaffolding or fencing that are used on the project.
- Theft- this is coverage in case someone steals building materials like lumber or copper wire.
- Natural disasters- this covers your new build in the case of something like a bad rainstorm or a tornado.
- Man-made disasters- coverage for a man-made disaster includes things like destructive vandalism or an explosion during construction.
- Soft costs- this covers additional costs that could come from the building project being delayed. Rental income is one potential example
Remodeling projects are protected
Did you know that your client’s home insurance doesn’t cover remodeling projects? This means that if there is damage to the property during the remodel, you or your client could be left with a huge bill. Builder’s risk insurance can help to protect you from this type of financial loss.
Builder’s risk insurance offers can offer coverage for a remodeling project the same way it does for a new build.
What isn’t covered by builder’s risk insurance?
Builder’s risk insurance is intended for large construction projects. Small jobs typically wouldn’t require the same type of coverage as the projects that this insurance is designed to cover.
Additionally, any incident that is specifically excluded from your policy isn’t covered by builder’s risk insurance. This may seem obvious, but it’s important that you have a strong understanding of your policy so that you don’t get blindsided by unexpected expenses.
Builder’s risk insurance through London Insurance Agency
At London Insurance Agency, we’re you’re local guides for all things insurance. If you’re looking for builder’s risk insurance to cover your projects, give us a call today!
We’d be happy to walk you through the entire process.