Which assets do builders risk policies protect?
Builders risk policies can offer protection for equipment, supplies and sometimes even work that’s been done so far. While specific coverages can differ, policies may offer protection for assets such as:
- Structures currently being built
- Structures that have been completed
- Major equipment and heavy machinery
- Common equipment and standard tools
- Supplies and materials
Whether structures that are being or have been built receive protection varies from one policy to another. It’s especially important to check this protection with the help of an insurance agent who knows builders risk policies well.
Any assets that are protected typically only get covered when they’re at the construction site. There are other insurance coverages (e.g. commercial property and inland marine) that can protect items when they’re elsewhere.
What sorts of projects can builders risk policies cover?
Builders risk policies can be customized to safeguard a variety of construction projects.
Multi-family residential buildings, retail stores, industrial facilities, office buildings and other properties might be insured while work is being done. There’s also coverage available for public infrastructure projects, large renovations or additions, and extensive hardscaping or landscaping work.
Can builders risk cover construction for a single-family home?
Builders risk policies are normally available for residential developments, but they typically aren’t purchased for building one home. If coverage for a single home build is wanted, a specialized insurance agent who knows builders risk policies can check whether a suitable policy is available.
What perils does builders risk provide protection against?
Depending on a builder risk policy’s terms and conditions, it could cover a range of perils. Commonly covered perils include:
- Adverse weather
- Water-related damage
- Fire and smoke
- Vandalism and theft
- And other specified threats
Can builders risk policies be extended if there are delays in construction?
If there are manageable delays that don’t constitute an insurance claim, it may be possible to extend the builders risk policy providing coverage. Policies often can be extended once without much issue.
Extending more than one time will likely require getting a new policy, and some policies might not offer any extensions whatsoever.
How much does a builders risk policy cost?
Premiums for builders risk policies are influenced by numerous factors, especially the project's scope, size and cost. Location, equipment used, expenses incurred and other factors can also directly affect premiums.
To find out how much insuring a specific construction project will cost, contractors can compare quotes with an independent insurance agent. Independent agents can request customized quotes from several insurance companies, allowing for quick and accurate comparison.
Where can Massachusetts contractors find builders risk insurance?
If you need help insuring a construction project that’s in Massachusetts, contact the independent insurance agents at Norwood Insurance Agency. We’ll help you find builders risk insurance that suits your construction project well.