When starting a construction project, whether it's a residential home or commercial building, numerous factors come into play to ensure its successful completion. One critical aspect that is often overlooked or underestimated is the importance of Builders Risk Insurance. This type of coverage provides essential protection for your project against unforeseen events that could potentially derail your construction efforts and impact your financial investment. In this blog post, I'll explain the details of Builders Risk Insurance, explaining what it is, why it matters, and how it can protect your construction project.
Builder's Risk Insurance is a specialized type of property insurance designed to cover the physical assets involved in a construction project. This can include the structure itself, materials, equipment, and machinery. The coverage can extend to both new constructions and renovations or remodels.
Builders Risk Insurance is essential for the following parties:
When to Get Builders Risk Insurance: It's very important to secure builders risk insurance before construction begins. If you call to get a policy after the project starts, you might run into some problems. The coverage typically starts when the project's foundation is laid and ends when the project is completed and ready for occupancy. It's important to note that the policy should cover the full estimated value of the completed project, including labor, materials, and other expenses.
Review your Policy: When selecting a builders risk insurance policy, consider the following factors:
Builders Risk Insurance is essential for protecting your construction project from unexpected setbacks and potential losses. By understanding its importance and choosing the right policy, you can ensure that your project remains on track, even in the face of unforeseen challenges. If you have any questions about Builders Risk Insurance or any other Business Insurance policies, please feel free to contact me.
Commercial Insurance Agent
With all the properties being built, renovated, bought, and sold in Austin, TX right now there’s definitely a need for Business Insurance. As we all know, when it comes to insurance, there are many different kinds of policies. A lot of investors are buying commercial or residential property and needing insurance while they are remodeling, restructuring or renovating. This is where a Builders Risk Insurance Policy comes into play. A Builders Risk Policy can be written on a three month, six month or annual policy depending on the insurance company. So why do you need a Builders Risk policy? Here are two main reasons.
If you have a property described above, it's extremely important you contact your insurance agent to see if they will write it. If they won't write it, you will need to get a Builders Risk policy. Here's some information that will be helpful for you when choosing a Builders Risk Insurance Policy:
How much does a Builders Risk Insurance Policy cost? Obviously costs vary by the size of the property. I have heard a good rule of thumb is 1-3% of the construction budget should be allocated towards the policy.
Most Builders Risk companies will need to know contractor information and experience, so make sure you choose an experienced builder for your project. If you have any questions about a Builders Risk Insurance policy or another Business Insurance policy, please feel free to contact me. It's an exciting time in Austin, Texas seeing all the growth and cool companies sprout up. I would be happy to meet with you and learn more about your business to see if I can help with your insurance.