How to Know Who Needs Builders Risk Insurance
Builders Risk insurance is a necessary coverage for anyone who is thinking about doing a major renovation or building a new structure from scratch. Lenders will not lend money without the proper insurance in place. To get a builders risk insurance quote, follow these steps.
Other People Are Reading
Instructions
-
-
1
Find an agent or broker that is familiar with builders risk insurance. As with any insurance, a knowledgeable agent is key.
-
2
Provide your agent with the cost of the project. Builders Risk insurers need to know how much insurance they will be on the hook for.
-
-
3
Submit a project description including the type of construction and number of stories.
-
4
Give your agent a copy of the contract to ensure that all bases are covered. Your broker should review the contract to make sure that you are adequately insured and to advise which obligations, if any, are beyond the scope of insurance. Your attorney should address those obligations beyond the scope of insurance.
-
5
Inform your broker of all safety features. Things like sprinklers, guardrails and fences around the subject property make the risk more attractive to insurance companies.
-
6
Tell your broker about the various project phases in addition to the beginning and end dates. In addition to the above information, Builders Risk Insurance underwriters analyze risk and determine rates by reviewing the critical phases in a project.
-
1
Tips & Warnings
A knowledgeable broker will know which companies offer coverage for soft costs such as financial costs, interest expense, marketing, legal and accounting expenses, costs not directly related to construction. Choosing the right broker is important.
Builders Risk insurance covers the structure while it is under construction. Once the structure is completed, you must purchase the appropriate property and liability insurance coverages.
