Builder's Risk Insurance
What is builder's risk insurance?
Builders Risk Insurance is a vital coverage solution for any construction project. It protects the insurable interest that midsized and large construction companies have in materials, fixtures and/or equipment during the construction or renovation of a building or structure.
What is builders risk policy in marine insurance?
Builders Risk Policy
This policy is taken by the Shipyards to cover the loss or damage to the vessel during construction right from the date of laying the keel till delivery of the vessel to the Owner including launching and sea trials.
Builder's risk insurance helps protect buildings under construction from damages due to:
- Lightning.
- Vandalism.
- Fire.
- Theft.
- Explosions.
- Hail.
- Acts of God, such as hurricanes or wildfires.
Who Needs Builder’s Risk Coverage?
Some common people you may want to include on your policy as insureds include the:
Any person or company with a financial interest in the construction project needs builder’s risk insurance.
- Property owner
- General contractor
- Subcontractors
- Lender
- Architects
What Types of Property Does Builder’s Risk Insurance Cover?
A basic builder’s risk insurance policy helps cover buildings and structures under construction. It also helps protect:
- Materials
- Supplies
- Equipment on site, in transit or at other locations
What Does Builder’s Risk Insurance Cover?
- Lost sales
- Rental income
- Additional interest on loans
- Real estate taxes
Exclusions
- Wear and tear
- Acts of terrorism and war
- Employee theft
- Rust and corrosion
- Mechanical breakdowns
- Damage due to faulty design
- Planning
- Workmanship and materials
- Engineers
