What is builders risk insurance?
There’s no feeling quite like building a home!Conrad Milsap – Lilac Insurance
An existing home purchase may require extensive remodeling, or extra time and money to get the features and layout you would like. Building a home gives you all the bells and whistles right out of the box!
If building from scratch is for you, then understanding the insurance needs are critical. You’ve arranged financing, decided on a contractor, and you’re ready to break ground. As important as the floorpan, color, the fit and finish of your home, is insuring the project with a builders risk policy.
From pouring the foundation, to the final coat of paint, builders risk insurance covers financial loss should a catastrophe happen. Fire, a freak windstorm, or theft of materials on-site waiting to be installed, builders risk insurance covers these events.
Builders risk is typically required by most lenders as a condition of financing. The responsibility to purchase this coverages depends on your particular agreement, but is frequently purchased by the general contractor. If you’re planning to take on the role of general contractor, insuring the project will fall to you.
What does builders risk actually cover?
Builders risk is designed to cover new construction and renovations for homes that don’t qualify for a standard homeowners policy yet.
Builders risk insurance covers damage to properties under renovation or construction. It can cover damages resulting from:
Fire or explosion
External theft of materials on site
Vehicles or aircraft crashing into the structure
& more depending on policy
Our policies go further and can also provide coverage for property owners and General Contractors.
- Lost income due to property damage
- Financial injury due to delays in construction
- Coverage for other structures such as fencing or signage
- pollution expenses
- valuable records coverage
- contract penalties
- debris removal
- carriers such as USASSURE can also cover perils such as flood or earthquake
Builders risk for renovations.
Does a homeowners policy cover you for a major renovation?
Many personal homeowners policies come with vacancy clauses. If a home is left unoccupied for more than 30 days, coverage can be void. Fill this gap with a builders risk policy. If you plan to complete major renovations to a property, and the home will not be occupied during construction, consult with your insurance agent and make sure your policy will still cover you while the project is underway.
A builders risk policy for a renovations can cover many of the same property damage perils such as fire, theft, wind, etc.. This coverage can provide you peace of mind while your project is being completed.
Often materials are delivered and stored onsite. If these supplies were stolen, or damaged in a fire, builders risk insurance will help make you whole.
Where to purchase a builders risk policy.
If your a property owner building a home, or completing a major renovation, your first place to turn might be your personal insurance agent. Some big name home insurance companies and agents write the appropriate policies.
If you’re struggling to find an appropriate policy, or maybe you’re building a home in an area that is hard to insure, reach out to an independent insurance agent. Stand-alone builders risk policies offered by local independent agencies such as Lilac Insurance are a great solution. Our agency works with carriers that specialize in the builders risk insurance market. Independent agencies can get you covered for a reasonable price with dedicated coverage.
We work with general contractors, and property owners for both residential, and commercial properties. Please feel free to reach out if you have any questions, or click the button below if you would like to request a quote.
Lilac Insurance Group offers personal, and commercial insurance products through a network of carriers for clients in WA, OR, ID, AND MT. We can be reached at 509-747-2531, or by email at email@example.com