Tips For Choosing The Best Builder’s Risk Insurance
Builder’s risk insurance, also known as course of construction insurance, protects buildings under construction from damage caused by events like fire, theft, vandalism, and certain weather conditions. Choosing the right policy is crucial to safeguarding your investment. Central Carolina Insurance Agency provides builder’s risk insurance in Davidson, Mooresville, Concord, NC, Kannapolis, Salisbury, NC and surrounding areas.
These are key tips to help you make the best choice:
- Assess the Project Scope and Value
Start by understanding the total value of the construction project, including materials, labor, and equipment. Ensure the policy limit matches this value to avoid underinsurance.
- Evaluate Coverage Options
Policies vary in what they cover. Standard builder’s risk insurance may exclude earthquakes, floods, or wind in certain zones. Consider optional endorsements or riders to fill these gaps if your site is in a high-risk area.
- Identify Who Needs to Be Covered
Ensure all key stakeholders—owners, contractors, subcontractors, and lenders—are included as named insureds or additional insureds. This avoids disputes in the event of a claim
- Check the Duration of Coverage
Builder’s risk policies are typically issued for 3, 6, or 12 months. Make sure the term covers the full expected construction period, with options to extend if delays occur.
- Review Exclusions and Limitations
Understand what’s not covered. Common exclusions include faulty workmanship, wear and tear, and contractor negligence. Knowing these helps you plan for supplemental coverage if needed.
- Compare Insurers and Costs
Get quotes from multiple insurers, but don’t focus solely on price. Consider financial strength, claim-handling reputation, and customer service. A reliable insurer is vital during a loss.
- Consult an Insurance Professional
Work with an experienced broker who understands construction risks. They can tailor a policy to your specific project and advise on necessary add-ons.
Choosing the right builder’s risk insurance requires careful consideration but ensures protection for your investment throughout construction.
Should you have any questions, feel free to give us a call.
