Buildings are sometimes exposed to major damage when they are under construction, which is why it is important for builders to consider a builders risk insurance policy. Rather than build new structures, many property owners opt to remodel. Builders risk insurance protects contractors against liability for damages to structures while they are under construction.
A person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a structure should those items sustain damage is often covered by builder’s risk insurance. Lenders will usually require builders risk insurance before issuing financing for construction. The same applies to remodel projects.
When a business break ground on a vacant lot, it is necessary to carry builders risk insurance, as a company owner may not have a definitive insurance policy to cover the new property.
The builders risk insurance coverage, sometimes called course of construction insurance, usually lasts for the duration of the construction and expires when the project is completed.
Working with a knowledgeable insurance agency like McGovern Insurance is a must to make sure your property is properly insured during construction. McGovern Insurance is an experienced insurance agency that can help with your builders risk insurance policy. Call us at (650) 593-8216 or complete the form on this page to get your personalized builders risk insurance quote.