Builders risk insurance is basically a type of temporary property insurance. Coverage begins during startup and ends at completion. You can get this type of insurance to insure your projects and materials from damages such as lightning, theft, vandalism, wind, fire, and vehicular accidents. These examples are covered by most standard policies.
Builders who wish to get builders risk insurance should take note of policy exclusions that are sometimes mistaken to be subparts of covered items. Examples are earthquakes, water damage, war, mechanical breakdowns, and employee theft. In most cases, coverage for earthquakes may be purchased separately.
There are extensions that builders may deem as necessary depending on their projects, such as Property in Transit which keeps your property insured from point A to point B. The route or places that the property or materials remain insured will be specified in the policy. Scaffolding, debris removal, and sewer and drain back up are some of the extension coverage that you may want to explore.
Another item that you take note of is the method of payment or reporting of your startups. There’s an option to report on a single shot, which is basically reporting each start up at a time. There is also monthly reporting, which requires startups to be reported each month prior to building. And there is annual reporting, which requires reports a year prior.
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