If Chip and Joanna have inspired you to finally tackle that home renovation project this year, listen up! Before you begin, you should be prepared to ask your agent a few questions about your current coverage.
Some background on builders risk coverage will help you make the right decision for you and your project.
Builders risk is a specialized type of property insurance designed for buildings under construction. This could be residential or commercial, renovation or new construction.
It’s designed to protect the financial interest property owners, real estate developers and general contractors have in a construction project. A builders risk policy addresses coverage that is often not covered by that of the contractor’s general liability policy – and the homeowners policy.
Because every construction project is different, no two builders risk policies are alike. Generally, however, most builders risk policies cover property losses due to fire, lightning, hail, explosions, hurricanes, theft, vandalism and many other risks.
Often, people assume they only need to let their insurance agent know about a new build they’re taking on. However, anytime you’re planning a renovation or a remodel, you should consider builders risk insurance. Your homeowner’s insurance may not be sufficient in covering building supplies and materials, potentially even including appliances.
Builders risk insurance can provide peace of mind that your exciting fixer upper project will not cause you significant financial loss. Our role is to understand your project’s risks, identify any gaps in coverage and offer the right solution for you.