Builders Risk Insurance
Builder’s Risk Insurance is specialized insurance that’s intended to insure structures while they’re under construction or renovation.
Do you need Builders Risk Insurance?
Builders Risk insurance, which is also called Course of Construction coverage, is necessary for both commercial and residential construction projects.
This type of policy provides protection for final structure replacement cost value including the materials, fixtures, and appliances which are intended to become an integral part of the structure. It can also be used to cover specific projects, such as a new room addition, a deck, or a remodeled bathroom.
The following are common coverage areas that are frequently requested to be included within a Builders Risk Insurance policy:
- Coverage A: Loss of value of an undamaged portion of the existing property
- Coverage B: Costs of demolition of the undamaged portion of the property
- Coverage C: Increased expenses to:
- Replace the property so as to comply with current building, zoning, or land use laws or ordinances.
- Repair the damaged property so that it complies with current building, zoning, or land use laws and ordinances.
Earthquake deductibles work differently than traditional property insurance policies as the deductible works as percentage rather than a dollar amount. Rebuilding the building after an earthquake you’re responsible for a % of the building’s replacement cost. Your responsibility at the time of loss would be a % of total values in respect of all interests at the location of the loss.
located at a job-site.
Builders Risk Insurance policies are available as three-month, six-month, or 12-month plans. Most insurance companies will allow extensions for work not completed during the project.
Reach out to me when you’re considering Builders Risk Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Builders Risk Insurance quotes from multiple insurance carriers so you can get the best possible rate.
As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.