Builder Risk Insurance
Posted: 7 September, 2023
You are building your dream home! You need to insure it with the correct homeowner insurance policy.
Builder risk insurance will cover the structure while it is either being renovated or built. Builder risk is also known as a course of construction insurance or even remodeling insurance. A builder risk insurance covers a residential or commercial structure while it is under construction. A builder risk policy will ensure that if something happens to the building during construction you are protected and do not lose everything you have invested into the property during construction.
Why do I need Builder Risk insurance?
Builder risk insurance will protect you in the event of a loss while a home is being built or renovated. If you take out a loan with the bank or a mortgage company for a home that is being built, they will require you to carry a Builder Risk policy. Here are a few examples of the type of losses that are generally covered under a builder risk policy:
- Property damage.
- Theft.
- Vandalism.
- Fire or lightning.
- Arson.
- Collapse.
- Windstorm or hail.
- Materials in transit and at temporary locations
- Debris removal
- Ordinance or law
- Pollution and clean up
- Scaffolding re-erection
- Scaffolding, construction forms
- Valuable papers
Written by: Premium Emilan