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Building in 2011? Look into Builder’s Risk Insurance Are you taking advantage of the low mortgage rates and building a home? If so, you should consider a builder’s risk policy. This type of insurance is designed to provide coverage for buildings that are under construction. Builder’s risk insurance provides coverage on an “all risk” basis, which includes theft, vandalism, accidental losses, damage and destruction of property. Basic perils like fire, wind storm, lightning, hail and are also covered. The property can include an entire building or other structure under construction, including building supplies and materials at the job site to be used in the build. If requested, the contractor can be named as an additional insured. Coverage will extend to insure the following: debris removal; fire department service charge; scaffolding, construction forms and temporary structures; profit for rehab projects; property at other locations that is intended to be installed (siding, lumber, etc.); property in transit; sewer and drain backup. There are a few things builder’s risk doesn’t cover. The contractor’s equipment and tools are not covered. Also, it does not cover losses that occur before construction begins or after construction is completed. The limit of the insurance equals the full value of the construction project. If your new year plans include building or renovating your home or other structure, be sure to look into builder’s risk insurance. It could save you money in unforeseen circumstances. Additionally, you may be required to insure the property while the construction is taking place. |
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