What Is Builder's Risk Insurance?
Builder's risk insurance is a type of insurance designed to provide protection on projects that are being built, renovated or repaired, according to an article in "The Risk Factor," a publication of Risk Management Services.
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Customers
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Builder's risk insurance policies are designed to protect property owners, contractors and developers, depending on the circumstances of construction. Policies are issued for both commercial and residential projects.
Term
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Builder's risk insurance policies are focused solely on the construction process and only last for the duration of construction. Builder's risk insurance would not cover losses after construction was completed, even losses that appear to be construction-related.
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All Risk
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According to the article in "The Risk Factor," builder's risk insurance is made on an "all risk" basis, which means that coverage is broadly attached to various ways that damage or loss to the insured property can occur.
Optional coverage
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Some builder's risk insurance carriers offer coverage for "soft" costs associated with coverage, such as financial costs, legal costs, tax costs or even losses related to a later-than-expected project completion.
Progress
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A builder's risk insurance policy increases its coverage as a project progresses and becomes more valuable, according to USInsuranceOnline.com.
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