As its name suggests, Builder’s Risk Insurance is designed to protect construction projects while they are in progress. If you live in Georgia or South Carolina, this is the coverage you need for projects under construction. This policy is commonly purchased by general contractors, property owners, or developers to protect against losses that may occur during the construction phase.
A basic Builder’s Risk policy covers not only the structure under construction, but also helps protect building materials, supplies, and equipment, whether they are located on the job site or in transit.
Builder’s Risk Insurance protects construction projects against physical damage caused by common perils such as fire, lightning, hail, explosions, theft, vandalism, and hurricanes. While these are some of the most common covered risks, it is important to review policy details with your agent, as coverage and exclusions may vary by insurer.
Anyone with a financial interest in a construction project should consider obtaining Builder’s Risk Insurance. This may include property owners, general contractors, subcontractors, lenders, and even architects, depending on contractual responsibilities.
The cost of Builder’s Risk Insurance varies from project to project, as these policies are customized. Factors affecting the premium include the amount of coverage needed for materials, the type of construction, the project duration, and the selected coverage limits. Typically, coverage limits are set to match or closely estimate the total construction cost.
Builder’s Risk policies usually begin on the effective date listed in the policy documents, although some insurers may impose restrictions at the start of construction. Since this is a temporary policy, it generally ends when the project is completed, when the policy expires, or when the building is occupied or put into use.
Builder’s Risk Insurance includes specific terms, coverages, and exclusions that should be clearly understood before purchasing. At Calidad Insurance, we’re here to answer your questions and help you choose the right coverage for your construction project.
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