How to Compare Builder's Risk Insurance

Builder's risk insurance is a temporary type of property insurance for homeowners that are renovating their homes or adding on to them and construction companies and general contractors who are building new structures. Policies vary depending on the coverage you need and the value of the property. Compare rates from more than one insurance company before you select an agent.

Difficulty:

Easy

Instructions

Things You'll Need

• Appointments with insurance agents
• Fee quotes from insurance companies

Compare Plans and Fees for Builder's Risk Insurance

1. Research the options you have for your builder's risk insurance coverage. Call large nationally known firms, as well as local insurance agents to see if they provide the services you need. Ask for price quotes on the phone if possible.

2. Take advantage of the quote finder function used by many insurance websites. This can be a quick and easy way to get an idea of how much you will be spending on builder's risk insurance. Print out the quotes to be able to compare them side by side.

3. Brush up on your networking skills. Meet with other professionals in your line of work--contractors or builders--or friends who have remodeled their homes. Ask what type of builder's risk policy they had and who provided it.

4. Set up an appointment to meet with local insurance agents who offer builder's risk insurance. Ask questions about what materials are covered in case of loss, as well as what types of situations are covered (for example, damage caused by wind storms, explosions, vandalism and fire). Have questions ready about how much different policies cost and what your deductibles would be.

5. Ask the representative from each company to explain the claims process to you. Filing claims may not vary across the board but even a small difference could be the deciding point for you.

6. Observe how the insurance agent answers your questions. Working with an agent who is confident is a must. A person who does not hesitate to say "I don't know but I will find out for you," shows that they care about your needs and will work to find out the answer to your question.

Tips & Warnings

• Make a chart of pros and cons from all the information you have collected if you are having trouble deciding which builder's risk insurance plan is right for you. Sometimes having the information literally laid out in front of you makes it clearer. Trust your instincts for your final decision.