What is Builders Risk Insurance?

Builders Risk Insurance, also known as Course of Construction insurance, is a specialized type of property insurance designed to protect buildings and structures under construction. It covers a wide array of risks during the build, from natural disasters to theft and vandalism, safeguarding your investment and ensuring you’re not exposed to financial losses before the project is completed.

Why do you need Builders Risk Insurance?

Construction projects are filled with uncertainties. From storm damage to fires and theft of materials, unforeseen events can result in significant delays and extra costs. Builders Risk Insurance helps protect your project from these financial risks, ensuring that any setbacks don’t derail your timeline or budget. Whether you’re building a new structure, remodeling an existing one, or installing fixtures, Builders Risk coverage is crucial for keeping your project on track.

What does Builders Risk Insurance cover?

Builders Risk Insurance typically covers physical damage to the construction site and materials, including:

  • Fire and Explosion: Protection against damage caused by fire or accidental explosions.
  • Weather Damage: Covers damage caused by storms, lightning, or wind during construction.
  • Theft and Vandalism: Secures materials and equipment on-site from theft or vandalism.
  • Building Materials: Covers materials stored on-site or in transit to the construction site.
  • Equipment Breakdown: May include protection for specialized equipment breakdowns, such as cranes or scaffolding.

Builders Risk policies are generally customizable to fit the scope of your project, allowing you to extend coverage for temporary structures, debris removal, and more.

FAQ: There’s more to know about Builders Risk Insurance.

Q: Who needs Builders Risk Insurance?
A: Builders Risk Insurance is essential for anyone with a financial interest in a construction project. This includes property owners, general contractors, subcontractors, and lenders.

Q: How long does Builders Risk Insurance last?
A: Builders Risk coverage is typically in effect for the duration of the construction project, from the start date until the project is completed or the structure is ready for occupancy. Some policies allow for extensions if the project takes longer than expected.

Q: What’s not covered by Builders Risk Insurance?
A: While Builders Risk Insurance covers many types of physical damage, it typically does not include liability risks, worker injuries, or damage due to faulty workmanship. These can be addressed by separate policies like General Liability Insurance or Workers’ Compensation.

What Happens If You Don’t Have Builders Risk Insurance?

Without Builders Risk Insurance, any damage to your construction project could result in significant out-of-pocket expenses and delays. Without coverage, you are exposed to a wide range of risks—everything from storm damage to theft. This not only affects your budget but could also impact your client relationships and timeline for project delivery.

Can Builders Risk Insurance Be Extended?

Yes, Builders Risk policies are generally written to match the length of your project, but if delays occur, most insurers will allow you to extend coverage until the work is completed. It’s important to communicate with your insurer as project timelines shift to avoid any coverage gaps.

ArcLight Insurance is the agency you need for securing the best Builders Risk Insurance.

At ArcLight Insurance, we specialize in providing tailored Builders Risk Insurance policies that fit the unique needs of your construction project. Our experienced agents work closely with you to evaluate the risks and ensure your coverage is comprehensive—from groundbreaking to completion. Whether it’s a residential build or a large commercial project, we offer policies that provide peace of mind at the most competitive rates available.

Protect your project from the unexpected. Contact us today for a free consultation on your Builders Risk Insurance needs, and let us help you secure the coverage you need for a successful build.