Building a structure is not an overnight endeavor. Many things beyond the control of insured parties can occur. Builder’s risk insurance provides protection of the structure, tools, materials and equipment used from hazards such as theft, fire, natural disasters, and other perils.
- Who Needs It
The candidates for coverage are wide-ranging. These should be any stakeholder with a financial investment in the construction project, which includes but is not limited to the groups below.
- General Contractors
- Landowners and homeowners
- Custom home builders
- Why Have It
In simple terms, it provides different protection than a general liability policy. That typically shields the insured from injuries and harm that occurs as the result of unforeseen accidents, while this covers the loss of actual physical property.
- What Amount
According to www.danielsinsuranceinc.com, a typical coverage amount is for the contract price. However, any policy should consider the worth of the completed project, which may include other assessments beyond the contract value itself.
- When Covered
The policyholders need to have a clear understanding of when the coverage begins and ends. In most instances, the signed contract starts protection, though there could be specifics that restrict this date. There also needs to be knowledge of the expiration timeframe, as certain milestones or lapses in work can affect the insurance.