What
is Builder’s Risk Insurance?
Builder's
risk insurance is a type of insurance policy which
covers residential and commercial structures while they are under construction
or being remodeled, or renovated. Builder's risk insurance is "coverage
that protects a person's or organization's insurable interest in materials,
fixtures and/or equipment being used in the construction or renovation of a
building or structure should those items sustain physical loss or damage from a
covered cause."
Builder’s risk policies are typically
available for three types of construction; ground-up new construction,
remodeling and renovation..
What is
Covered?
Builder’s risk is intended to protect
construction sites from loss due to certain types of damage. The exact coverage
and limitations varies between providers and policies but generally builder’s
insurance will cover against loss from:
●
theft,
●
vandalism,
●
fire,
●
damage to equipment,
Additional coverage can be purchased to
include protection from loss due to:
●
flood,
●
windstorm,
●
earthquake,
●
mudslides,
●
construction materials,
●
temporary structures,
●
fencing,
●
scaffolding,
●
and landscaping.
What is
NOT Covered by Builder’s Risk Coverage?
●
terrorism,
●
acts of war,
●
government seizure,
●
nuclear hazards,
●
Injuries or accidents on the job
site,
●
damage to materials while they are
in transit.
