Builder’s risk insurance provides property coverage for buildings and structures that are under construction. It’s crucial for policyholders to understand exclusions and assess whether supplemental coverage or endorsements are necessary to fully protect their investment.
With more than 45 years of experience as the exclusive administrator for the Builders Risk Plan insured by Zurich, we’ll teach you the basics here to help you confidently sell and service policies for new construction, remodeling, and installation projects.
Purpose of Builder’s Risk Insurance
The purpose of builders risk policies is to provide insurance for builders for any damage or other losses during the construction process. Builders risk coverage typically combines standard types of construction coverage with optional endorsements reflecting the nature of the covered commercial or residential projects.
Builders Risk Insurance Benefits
Builder’s risk insurance is designed to protect buildings and structures that are being built or renovated. It covers the cost of construction and equipment used at the project. Coverage can be purchased by the property owner or general contractor.
Builder’s Risk Insurance is specially designed to protect buildings and structures that are under construction. It not only covers the structure of the building but also the materials used in the construction process.
Difference between Builder’s Risk and General Liability Insurance
Builder’s risk insurance provides property coverage for buildings and structures that are under construction, while general liability insurance provides coverage for bodily injury and property damage. The main purpose of Builder’s Risk Insurance is to protect against potential loss due to fire, weather, theft, or other perils during construction.