How to Get Contractors Builder's Risk Insurance
General contractors are hired to build for people, from large companies who want a new office building, down to a homeowner needing to add a room on to his house. A lot of time, effort and money are put in to drawing up plans and buying materials, not to mention the work itself. Contractors can protect themselves from loss or damage to their building materials, tools and profit if they get builder's risk insurance.
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Things You'll Need
- Rate quotes
- Value of the project, including profits
- Size of the dwelling or other structure
- Application
- Personal information of homeowner
Instructions
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Protect Yourself From Lost Profit With Contractor's Builder's Risk Insurance
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1
Find out the size of the area you will be working on. Measure it in square feet. If you are renovating a person's home, ask him for this information.
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2
Assess the market value for the project. You can add in any profits that you will receive from the sale of a building, for example. Value of the land on which the structure is being built is not used to determine this amount.
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3
Get rate quotes from agents offering contractors builder's risk insurance if you are looking for a new provider or do not have a current insurance agent.
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4
Ask the homeowner, if applicable, if she wants to be named on the policy as well as you. Many insurance companies offer this service free of charge. You will need her full name, address and phone number.
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5
Fill out the application in its entirety. Include your work history and license numbers. Make a copy before sending it out to be processed and keep it in a safe place.
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6
Decide which additional coverage, if any, you want to get. Make sure your tools are covered for theft and that materials are covered from the time they leave the warehouse or store, until they reach their final destination.
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7
Pay your premiums in a timely manner and remember to renew your policy if needed. Builder's risk policies usually range from 6 months to 1 year.
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Notify the homeowner right before you have finished the project that the builder's risk insurance will expire as soon as the work has been completed. Suggest that he contact the custodian of his homeowner's policy to increase coverage to reflect the new addition or renovations.
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Tips & Warnings
It is highly advisable and maybe even required in some areas for contractors to have personal liability coverage as well as builder's risk insurance. This protects the insured against injuries that occur while work is being done.
