Builders Risk
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This policy is designed to provide coverage for property owners and builders for commercial or residential building projects under the course of construction, renovation or repair.
Builders Risk policies provide coverage on an “all-risk” basis (subject to policy exclusions) for which the insured has an insurable interest. These may include:
- Fire
- Theft
- Explosion
- Water damage
- Testing
- Mechanical or electrical breakdown
- Collapse
- Vandalism and malicious mischief
- Riot
- Accidental losses
- Damage or destruction of property
In addition, this coverage can include installed or uninstalled building materials destined to become part of the final building or structure from the moment they are delivered to the job site. It can also include property while in transit or at temporary storage locations. Note that the limit of insurance usually equals the completed value of the project.
Optional coverage can be requested to include “soft costs” not directly related to construction. Some examples are: costs related to design error, faulty workmanship, changes in ordinances or laws, financial costs, additional interest expenses, leasing and marketing expenses, legal and accounting expenses, and delayed opening loss of income if a delay in completion results in loss of revenue. Both flood and earthquake coverage may be available upon request.
Contact us with questions or to learn more.