As a contractor, you know how important it is to protect your business from potential risks and damages.

One way to achieve this is through builder's risk insurance, specifically designed to cover property damage during construction projects.

This article discusses all the essential information you need to know.

What is Builder's Risk Insurance?

Builder's risk insurance is a property insurance that covers damages to buildings and structures during construction.

As a contractor or home builder, this insurance protects your business from financial loss due to property damage or loss during construction projects.

It's important to note that a builder's risk insurance is typically only valid during the construction phase of a project, and coverage ends once the project is completed.

The policies typically cover many perils, including fire, wind, lightning, and theft.

In addition to protecting physical structures, these policies can cover materials, equipment, and supplies used on the construction site.

If something happens to your building or equipment while used on the job site, you can rest assured that your builder's risk insurance policy covers you.

At Hotchkiss Insurance, we understand the importance of protecting homebuilders and contractors in Texas.

We're devoted to providing our customers with the best possible coverage options and expert advice regarding builder's risk insurance. Talk to us today to get started.

What Does Builder's Risk Insurance Cover?

Builder's risk insurance covers a wide range of potential damages and losses that may occur during the construction process.

Here are some of the most common things that the insurance typically covers:

• Property damage. This includes damage to the physical structure being built and any materials, equipment, or supplies on site.

• Weather-related damage. Builder's risk insurance typically covers damage caused by wind, hail, lightning, and other weather-related events.

• Theft and vandalism. If someone steals materials or equipment from the job site or vandalizes the property, it can help cover the expenses for repairs or replacement.

• Soft costs. These costs are not directly related to physical damage but rather to delays or interruptions in the construction process. It can cover additional financing costs, lost profits, and interest.

• Business interruption. If damage to the property causes delays or interruptions in the construction process, the insurance can provide coverage for lost income and other expenses associated with a business interruption.

• Other potential damages. Depending on the policy, builder's risk insurance may also cover damages related to design errors, faulty materials, or faulty workmanship.

It's important to note that builder's risk insurance policies can vary widely depending on the insurance provider and the specifics of the construction project.

Don't wait until it's too late to protect your construction project from potential financial losses. Contact Hotchkiss Insurance today to learn how builder's risk insurance can benefit your business. Get in touch with our specialists to get started!

Who Needs Builder's Risk Insurance?

If you're involved in the construction industry in any way, whether as a contractor, subcontractor, or property owner, it's essential to consider obtaining builder's risk insurance.

This type of insurance protects all parties involved in a construction project from financial loss due to property damage or loss during construction.

Without it, you could be liable for repairs or replacements, which can be incredibly costly.

Generally, anyone interested in a construction project should consider obtaining builder's risk insurance. This includes property owners, contractors, subcontractors, and lenders.

If you're a contractor working on a project requiring you to provide proof of insurance, builder's risk insurance is likely to be required.

Ultimately, suppose you want to protect your business and ensure you're not liable for potential damages or losses during a construction project. In that case, builder's risk insurance is an essential investment.

As a contractor, you know that unexpected events can derail even the best-laid plans. That's why investing in builder's risk insurance from Hotchkiss Insurance is essential.

Contact our representatives and learn more about how we can help you protect your business from potential risks and damages.

Why Do Home Builders Need Builder's Risk Insurance?

Home builders need builder's risk insurance for a variety of reasons. During the construction process, a lot can go wrong, and builder's risk insurance provides essential coverage to protect you from potential financial losses.

The insurance can cover property damage, weather-related damage, theft and vandalism, soft costs, and business interruption, ensuring you're protected from a wide range of potential risks and damages.

In addition to covering these potential risks, builder's risk insurance provides home builders with peace of mind. By knowing that you're protected from potential financial losses, you can focus on building quality homes without worrying about what might happen if something goes wrong.

Protect your construction project and business from potential risks and damages with builder's risk insurance from Hotchkiss Insurance.

Our team is devoted to providing you with the best coverage options to fit your unique needs, so you can focus on building quality homes. Call us today to get started!

How Much Does Builder's Risk Insurance Cost?

The cost of builder's risk insurance can vary depending on various factors, including the property's value, the construction project's length, and the types of risks and damages you want to be covered.

However, on average, builder's risk insurance can cost between 1% and 4% of the total construction budget.

Let's say you're a contractor working on a construction project with a total budget of $500,000.

You want to ensure the property is covered for potential risks and damages during the project.

Based on the average cost of builder's risk insurance, you can expect to pay between $5,000 and $20,000 for builder's risk insurance.

It's significant to remember that the cost of builder's risk insurance can vary depending on the specific details of your construction project, such as the location, the project's duration, and the type of property being built.

At Hotchkiss Insurance, we specialize in providing builder's risk insurance for contractors and can help you find the coverage you need at a reasonable cost.

To get an accurate quote, contact us today and discover how we can help you protect your construction project and your business from potential financial losses.

How to Get Builder's Risk Insurance for Contractors?

Getting builder's risk insurance for contractors is a straightforward process that can help protect your construction project and your business from potential financial losses. Here's a step-by-step guide to help you obtain builder's risk insurance:

Choose an insurance provider

The first step in getting builder's risk insurance is to choose an insurance provider. Look for a provider specializing in this type of insurance and has experience working with contractors in your area.

Determine your coverage needs

Once you've chosen an insurance provider, you must determine your coverage needs. Your coverage needs will depend on the specifics of your construction project, including the property's value, the project's length, and the types of risks and damages you want to be covered.

Get a quote

Once you've determined your coverage needs, you can request a quote from your insurance provider. The quote will outline the costs associated with the insurance policy and the coverage you'll receive.

Review and sign the policy

After you've received a quote and decided to move forward with builder's risk insurance, you'll need to review and sign the policy. Make sure you read the policy thoroughly and ask any questions you may have before signing.

Pay for the policy

Finally, you must pay for the builder's risk insurance policy. Depending on the provider, you may be able to pay the full premium upfront or set up a payment plan.

Find an Experienced Agent or Broker

Finding an experienced insurance agent or broker is essential to obtaining the right coverage for your construction project if you're a contractor or home builder.

A knowledgeable agent can help you understand the various types of coverage available, assess your risks and coverage needs, and find the best policies at a reasonable cost.

Builder's risk insurance is a critical type of coverage for contractors and homebuilders, as it protects against potential risks and damages that can occur during construction.

It's important to work with a trusted insurance provider who can help you obtain the right coverage for your unique needs.

Hotchkiss Insurance has provided comprehensive insurance solutions for contractors and homebuilders for over 45 years.

As proud members of the Builder Agent Network and active members of the Texas Association of Builders, we're dedicated to protecting and supporting the homebuilding industry.

Contact us today to learn how we can help you obtain builder's risk insurance and other essential coverage for your construction project.