How to Fill Out a Builder's Risk Insurance Application

Builder's risk insurance is a temporary policy that protects contractors and homeowners against loss, theft or damage during the construction process. Builder's risk insurance covers a new building being built or an existing site that is being renovated or remodeled. There are a few figures you need to have on hand when you fill out an application for coverage.

Things You'll Need

• Estimated value of finished project
• Measurements and age of existing building
• Contact information and work history of contractor
• Photocopier or scanner and printer
• Dates for project construction

Instructions

1. Read over the questions on the builder's risk insurance application before you fill it out. It is easier to know what information you need to have with you ahead of time instead of repeatedly stopping to find the necessary numbers or names.

2. Make extra copies of the blank application form in case you make a mistake when entering information.

3. Fill out your personal information on the builder's risk insurance forms. This usually includes your name, address, phone number and email address.

4. Know your project's location address to fill in the appropriate blanks. If the project is renovating or adding on to your own home, this will be easy. If you are a contractor working for a commercial enterprise, make sure to get the accurate information.

5. Measure the square footage of the area to be built if you are asked the size of the dwelling or construction site. If the site is your home, your mortgage or lien papers most likely have this information in them.

6. List the dates when you plan to start and complete building or remodeling. Builder's risk insurance only covers a site while it is under construction. Once you have finished building, the policy expires and you are required to purchase a permanent type of insurance.

7. Determine the value of the new building or the renovation. You must buy enough coverage to cover loss or damage up to the market value of the construction.

8. Ask your contractor about his work history and enter it onto the application. Most insurance companies want to know if he is a homebuilder, general contractor or another type of professional and how many years he has been in business. You will also need to know if he has ever filed a builder's risk insurance claim on his projects.

9. Save a copy of the completed application in a safe place until you have your new insurance policy in hand.

Tips & Warnings

• Builder's risk insurance tends to cover damage that results from some weather related causes like rain, hail and lightening. Earthquake coverage is usually added to the policy only as an extra charge. If you live in an area prone to earthquakes, consider springing for the extra premium.