If you plan a construction project or renovation, you know that accidents can happen. Accidents that could potentially destroy your hard work and effort are risks that you need to minimize. Before you initiate the plans and design on either residential or commercial property, you should consider the right type of protection for your new construction, renovation or remodel. Consider a Builder’s Risk policy that can provide that necessary layer of protection you need to have in place.
What is a Builder’s Risk Policy?
Whether you are dealing with residential or commercial property, this coverage is designed to provide protection for that property during the renovation or construction process. For a nominal fee, this endorsement provides coverage on an open-peril basis for losses that can and do happen during installation, new construction, or renovations.
Losses can damage the structure itself, new fixtures, building materials, and HVAC equipment so there needs to be coverage for those risk exposures. Typically, a builder’s risk endorsement has coverage limits that are established by the projected “completed” value of the property and exist throughout the renovation/construction process.
Who Should Consider This Type of Coverage?
This is a great question that you may be asking right now. Anyone who has a vested interest involving a construction project should be considering this coverage. Below are some examples of people/organizations who may need this protection, but not limited to:
- Commercial/Residential Building Developers
- Property Owners who are planning new construction, remodel, or renovation
- Contractors (general and subcontractors) who are working on the project
- Anyone or any Financial Institution that is loaning money for the project
- Architects/Designers/Engineers who design the job
Coverage Options Under a Typical Builder’s Risk Policy
Protection for your project, building equipment, the structure, and materials for the construction/renovation is essential. The good news is that your endorsement can be custom designed to fit your unique project needs during the projected construction time. Coverages include, but not limited to:
- Building Equipment on-site and off-site
- Foundations and Excavations
- Building Materials (on-site and off-site) which will become a permanent part of the building
- Soft Costs are costs that begin when a covered peril happens that creates a delay in the job completion. This coverage exists to allow reimbursement during the time period from the delay until the date of completion after a covered loss.
- Scaffolding
There are other coverage considerations available, so before you initiate any significant construction or renovation project, it is recommended you contact your local independent insurance agent to make sure all your needs and concerns are addressed.
Cameron Group Insurance is Here for all Your New York Commercial or Residential Insurance Needs
Your next construction job is our business, and we want to help with any of your residential or commercial insurance needs. Contact us today at 845-627-2130 to explore your coverage options so that your next project runs as smoothly as it should.
