One type of insurance for construction projects is a builders risk policy. While the exact terms of this type of policy are usually customized based on the details of a construction project, most policies protect against property loss due to common factors. As reported by SB One Insurance Agency, builders risk insurance generally covers property losses related to theft, fire, severe weather, and vandalism.
Types of Property Covered by Builders Risk Insurance
Generally, builders risk insurance is designed to provide coverage for buildings while they are under construction. Homes, commercial buildings, and other structures may qualify for this type of insurance. Along with building itself, most policies also cover the construction materials, supplies, tools, and equipment on the site. Some policies cover equipment and materials while they are in transit as well.
People Who May Need Builders Risk Insurance
In any sort of construction project, there may be several parties that need builders risk insurance coverage. Generally, insurance is important for anyone with a financial stake in the construction project, including the general contractor, subcontractors, and property owners. If there are loans related to the construction project, such as a mortgage on a new home, the lender may be included in the policy and have specific requirements for coverage.
There are several incidents that can hamper a construction project. Builders risk insurance can help owners and construction professionals protect themselves from financial losses due to theft, fire, and vandalism.