Personal Builders Risk Insurance

What is Personal Builder's Risk Policy? 

A personal builder's risk policy covers a building, such as a home, garage or other structure on your property while under construction.  Under construction includes repairs, renovating or new construction.  

If a bank is involved to provide funding, they may require a personal builder's risk policy while construction undergoing.  This type of policy provides coverage should a loss occur from:

  • fire
  • explosion
  • hail
  • lightening
  • theft
  • vandalism
  • wind

Common names to include on your personal builder's risk insurance policy as "insureds" are the property owner, general contractor, subcontractors, bank or lender and architects.

Customized Policy

While every builder's risk insurance policy differs in varibles, there are five items to consider when determining coverage:

  1. Construction materials 
  2. Renovation, repair or new construction project
  3. Length of time under construction
  4. Total value of home or structure once fully completed.
  5. Deductible amount

While this seems easy to determine, a conversation with your hired builder or construction contractor may be required to get the precise amount of insurance needed. 

No Liability, No Injuries

These policies do not offer protection against injuries or liability.  They only provide coverage on property while undergoing construction, including repair and renovations and have a time limit. 

Builder's Risk insurance policies may not offer protection on wear and tear, employee theft, mechanical breakdowns, or damage due to faulty design or installation.  


Who Is Responsible? 

Most commonly, the property owner or the contractor is responsible for obtaining this policy.  All involved parties must be named in the policy, such as the owner, contractor, subcontractors, the bank, and/or architects/engineers.  

Once a job is completed, temporary coverage under the Builder's Risk insurance plan will end, and coverage under your home insurance policy may need to be evaluated to ensure the replacement value of your home has been adjusted to equal the updated improvements.  

Have questions about this coverage? Our team of specialists will be happy to help you choose the best option for your business.  Give us a call, schedule an appointment, or complete the form below and include the best time to contact you.  

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