For new construction or extensive renovation, builders risk insurance is important coverage that is often misunderstood. It is a form of property insurance targeted at buildings that are under construction or substantial renovation and is designed to cover those investments during the design and construction process.
The construction materials, tools, and other investments that are a part of the construction process are at risk without builders risk coverage. In the event of a natural disaster (think hurricane or huge snow storm) or other damage, your commercial builder’s risk insurance keeps you financially protected.
Adding builder’s risk coverage to your existing insurance portfolio is simple. You will need to:
Get an estimate of your construction costs which includes materials, tools, and equipment. If you are renovating an existing building, the cost of the building itself will also be factored in. We’ll also need an estimate of your soft costs, as many of these would need to be duplicated after a disaster. This process helps determine the amount of coverage you need for your construction project.
Purchase a builder’s risk policy that covers the entire estimated cost of your construction. That will ensure that any issue, no matter how big or small, is totally
We’ll then need to discuss the need for General Liability for the project, and possibly Workers Compensation coverage for any employees (including uninsured contractors, sub-contractors or helpers).
Don’t leave your construction project vulnerable to damage. Call Aronson Insurance today at 781-444-3050 to find a builder’s risk insurance plan that suits your needs.