- What is it?
Builders risk insurance offers specialized protections for in-progress construction. Policies normally compensate customers if their project isn’t completed on time due to a covered delay.
- Who’s it for?
Builders risk coverage is generally recommended for larger construction projects. California contractors working on larger commercial or government projects may want a policy.
- What is offered?
- Larger and smaller equipment
- Specialized and common tools
- Building materials and supplies
Builders Risk Insurance in California
What is builders risk insurance?
Working in construction comes with all sorts of challenges, and sometimes challenges can lead to prolonged work delays. While minor delays might be handled without much issue, major delays can cost customers and leave contractors financially liable. Builders risk insurance may help California contractors protect themselves from this risk.
Builders risk insurance offers specialized protections for in-progress construction. Policies normally compensate customers if their project isn’t completed on time due to a covered delay.
When should California contractors consider builders risk coverage?
Builders risk coverage is generally recommended for larger construction projects. California contractors working on larger commercial or government projects may want a policy. The costs that a contractor is liable for can be substantial when these projects aren’t completed on time.
In some cases, commercial and government customers may require that any contractor they hire for a project carries builders risk coverage.
Get A Quote!
What does builders risk coverage protect?
Builders risk coverage can extend to many things that are at a construction site. Depending on a specific policy’s terms, items such as the following might be included in coverage:
- Larger and smaller equipment
- Specialized and common tools
- Building materials and supplies
- Completed and in-process structures
Coverage for structures is included in many policies, but this is one protection that can vary a lot. Contractors should work with an insurance agent who knows builders risk well, to make sure they understand whether completed structures and in-process structures are protected.
Other protections for equipment, tools, and supplies normally apply only when these are at the covered construction site. Different insurance coverages are normally needed to insure these when they’re at a facility or being transported.
Which perils are covered under builders risk policies?
Most builders risk policies include coverage for perils such as fire, smoke, theft, vandalism, and certain weather events. Specified causes of water damage and any other specified perils might be covered, too.
Whether coverage applies to forest fires depends on the particular terms of a policy. A knowledgeable agent can check whether a policy covers forest fires.
What types of projects can builders risk policies be purchased for?
Builders risk is typically used to protect construction sites of larger projects. Policies might be purchased for retail centers, office buildings, industrial facilities, government buildings, public infrastructure, apartment buildings, residential developments, and similar structures. Occasionally, a policy might even be purchased for major renovation or landscaping work.
Can builders risk coverage be used for single-family home construction?
These policies normally aren’t purchased when working on one house. They’re frequently used to insure subdivisions and residential developments, but aren’t often sued for just a single house. If coverage for one house is needed, a knowledgeable agent can check which of the available policies might work.
Is it possible to extend a builders risk policy if there’s a construction delay?
Builders risk policies often have an option to extend coverage if a project exceeds the expected timeline. Such extensions are often limited to only one, after which a new policy usually must be purchased if delays continue. These are details that should be checked by an insurance agent.
How much do builders risk policies cost to purchase?
The cost of builders risk coverage is influenced by multiple factors, not the least of which is the size of the project. The project’s scale, type of construction, anticipated timeline, and equipment used can all influence cost. So too can a contractor’s history and still other details.
To find out how much builders risk coverage will cost for a specific policy, contractors should check rates with the aid of an independent insurance agent. Independent agents are able to source quotes from several insurers.
Where can California contractors find a builders risk insurance policy?
If you need builders risk insurance for a construction project, get in touch with the independent insurance agents at Truck Writer Insurance Services. Our California agents will work closely with you, to find a policy that provides the protections your project requires.
What People Say About Truck Writers Insurance Services
Ron is the man. I used Ron to get my limousine insurance with CPUC for the past 3 years. It’s always a great experience and easy to get my policies and payments done without going to their office. This is the man to beat if you’re looking for cost-effective and reliable commercial insurance!
