| Construction sites are subject to various | | | | millions of dollars will be invested in the project. A |
| construction-related risks, accidents, damage etc that | | | | detailed study of the project can ensure that the |
| threatens the completion of project and exposes | | | | project owner gets right type and level of coverage. |
| materials in use or in transit to grave risk. Builder's risk | | | | The insurance company needs to know the key |
| insurance indemnifies the insured against any loss, | | | | information pertaining to size and scope of the |
| theft, or damage to buildings, structures, equipments, | | | | project. Detailed information like number of stories to |
| and materials during the entire course of construction. | | | | be built in the building, material to be used, type of |
| Builder's risk insurance provides coverage for new | | | | roof to be used, and its location needs to be |
| construction works, renovations, and remodelling | | | | provided to help insurance company assess the level |
| works. Normally, it is taken by the owner of the | | | | of risk associated with the project. |
| building and contractor's name can be added to it | | | | Information about the contractor who will be working |
| later. | | | | on the project, number of years of experience the |
| Who Buys Builders Insurance? | | | | contractor company has in such projects, number of |
| Builder's risk insurance is essential for those operating | | | | similar projects successfully executed etc needs to |
| in construction industry. It provides financial protection | | | | be provided to ensure all aspects of project get |
| against damages, theft, and losses to the new | | | | covered. The insurance company needs to be |
| building or existing structure due to fire, vandalism, | | | | provided with scheduled start date of the project |
| wind, lightning and other hazards. This insurance is | | | | work and projected date of completion of each |
| generally taken by the owner of the building or | | | | stage of the project to get more insight into the |
| project. Its scope can be extended further to cover | | | | project. As the level of risk is higher during some |
| contractors, sub-contractors, equipment owners, | | | | phases of construction, informing this to insurance |
| architects, engineers etc involved in the project. | | | | company can help it to formulate better insurance |
| Builder's risk insurance is beneficial for owners or | | | | policy. Informing about security measures adopted |
| contractors as many lenders, banks, financial | | | | like fencing, security guard at site can help reduce |
| institutions will finance the project only when this | | | | the premium. Thus, builder's risk insurance should be |
| insurance is taken. | | | | bought after a detailed study into every aspect of |
| When to Buy Builders Risk Insurance? | | | | construction project. |
| Builder's risk insurance covers the project during the | | | | The insurance policy should be thoroughly scrutinized |
| entire course of its completion and ends automatically | | | | to ensure crucial aspects of construction project are |
| after completion. Often, builder's risk insurance is | | | | covered and significant coverage is not excluded. |
| purchased after a contract is signed without doing | | | | Efficient coverage of any potential hazard to |
| any detailed study of construction project. Issues | | | | construction project ensures better recovery during |
| pertaining to coverage can arise by purchasing such | | | | loss period. This ensures that the project gets |
| insurance without going into specifics. The builder's | | | | completed on time and all parties properly |
| risk insurance needs to be purchased from insurance | | | | compensated. |
| company after meticulous study of the project as | | | | |