How to Gather Information to Get a Builders Risk Insurance Quote
A builders risk insurance policy is often necessary in order to get financing for new construction or for remodeling an existing structure. Those who may need builders risk insurance include general contactors, building owners and real estate developers. The policy covers damages incurred by explosions, aircraft crashes, fire and other causes.
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Instructions
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Inform the insurance broker about new construction or remodeling plans and consult with them about the precise type of coverage required for financing.
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Make an assessment on the construction costs of the project. Be sure to include all of the materials to be installed and the tools to be used in the process. Establish a current market value of the materials and the tools.
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Define the location of the project. Some locations are inherently hazardous and this is taken into consideration when determining the possibility of an accident.
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Ascertain the value of the property to be altered. Tax assessments are not a reliable means to do this. Have a qualified assessor give you an appraisal.
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List any storage facilities for the construction materials and tools. Inform the insurance broker if the facilities are located at the site or off site.
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Determine an estimated time for the project to be completed. Include real time and labor time. The formula for determining the amount of coverage includes time and materials.
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Tips & Warnings
It may be useful to figure in the amount of revenue that will be lost on a per day basis in case of delays due to damages covered by the builders risk policy. Figure this amount into your coverage quotient.
Damages from earthquakes and terrorism are not commonly included in the basic builders risk policy, but can be added at an additional cost. Some types of equipment may require expanded coverage, as well.
The builders risk policy generally does not include liability coverage. This will need to be arranged separately.
Builders risk insurance is a temporary policy used only during the construction or remodeling phase. Permanent insurance will be needed upon completion.
