Builders’ risk insurance is a policy that protects buildings and structures under construction. It covers property damage along with soft expenses, such as loss of rent due to the incident.
For instance, if a fire were to break out at a construction site, it could devastate the structure, ruining all the progress and placing a major delay in the project.
However, if those running the operation have builders’ risk insurance, they could use it to cover the cost of the burned supplies, materials, and equipment, as well as the expenses associated with redesigns, refinancing, and rebuilding.
A builders’ risk insurance policy can financially help them get the construction project back on track.
What Does Builder’s Risk Insurance Cover?
While some policies may differ, many builder’s risk insurance coverage protects against damage due to:
- Fire
- Wind
- Hail
- Lighting
- Explosions
- Theft or vandalism
That said, some exclusions may apply, such as damage due to:
- Poor planning or faulty designs
- Employee theft or vandalism
- Acts of war or terrorism
- Normal wear and tear
Who Needs Builders’ Risk Insurance?
Any person or company financially involved in a construction project should consider purchasing builders’ risk insurance. For example:
- Contractors
- Subtractors
- Developers
- Property owners
- Sellers of property under construction
Does Falvey Insurance Group Provide Builders’ Risk Insurance?
Yes, Falvey Insurance Group provides builders’ risk insurance bundled in our Inland Marine Division coverage. We strive to reduce exposure to losses at smaller building projects, such as commercial complexes, offices, schools, strip malls, shopping centers, and warehouses.
While some restrictions may apply to certain construction types and geographical areas, our coverage oversees hard and soft costs, including:
- Building materials
- Supplies
- Equipment
- Machinery
- Fixtures
- Temporary storage structures
- Scaffolding
- Loss of rents
- Readvertising, redesigning, and refinancing
For more information, contact us today.
