Builders Risk Coverage
Builders need insurance that covers their risk during home construction. This policy may also cover the risk that affect materials that are pending installation. Builders risk insurance is usually required when a construction loan is involved. This policy can be purchased by the homeowner or the contractor/builder. Builders risk insurance is usually offered on a “special perils” basis. Special perils policies are a form of all-risk coverage subject to certain exclusions.
Builders risk insurance is for new construction projects, large-scale renovations or just smaller remodels. If you are performing a renovation or remodel, this policy covers the risk of existing structure as well as the additions and renovations.
Builders risk insurance should be utilized before construction start and stays in effect until the building is put to its intended use or sold. This is the best way to get discounted rates from the our many may carriers.