Many folks who are not a part of the construction business do not know about the financial product called builders risk insurance.
The intent of this insurance is to cover one's monetary interest in the raw material during the entire duration of a construction project, whether it is while building a new structure or remodeling an existing edifice.
This includes all the products on site, en route, or already utilized and incorporated in the construction project.
The builder or remodeling contractor or the homeowner, whoever is performing the work and is actually at a financial risk, can procure builders risk insurance.
As most homeowner policies don't offer coverage on the properties being remodeled, the homeowner can be especially at risk at that moment.
What Makes Builders Risk Insurance Different From Contractors General Liability?
The coverage of builders risk insurance is distinctly different from contractors' general liability insurance or the familiar homeowners' policy.
It is also unique since it doesn't follow the "one size fits all" policy and can differ from job to job according to the need.
A builders risk insurance policy can be purchased for a shorter period during the "construction season."
Coverage under most builders risk insurance can vary on topics such as theft, equipment breakdown, or even profit protection for the contractor.
The industry specification for adequate coverage consists of the finished re-sell value of the property and the realistic profit of the builder.
Obvious Benefits to Builders Risk Insurance
The perks of a builders risk insurance policy are very obvious:
- For the contractor, the important point is that his material is covered in the event of a fire, theft, or malicious act.
- This can provide a small-business owner peace of mind in a society full of litigation and claims.
- Now the homeowner has protection when his property is most vulnerable while under construction.
Additional riders can also be bought for builders risk insurance policies to cover most contingencies, even loss of income from delayed openings or additional loan interest expense.
Protect your company and its investment in a new building - seek help from a builders risk insurance agency to get protection while construction is ongoing!