What Contractors Need to Know about Builders Risk Insurance Policy

If you are a contractor there is a good chance you need builders risk insurance coverage is one that provides temporary coverage to protect property while it’s being improved, added onto, or built. Property that is under construction faces risks that many people don’t think of, such as fire, rain, hail, theft, vandalism, and wind. Since these types of risks are completely out of the control of the builder and can easily damage materials or construction, it’s important to have a quality insurance policy in place to cover these builders risks.

Coverage generally should have a start date of the day that any materials are brought to the job site, and should extend until the house or property is “signed off” as completed by the owner or tenant. This is important, because if materials are damaged at any point after delivery, they should be covered by insurance; and if damage occurs at any point before the house or property is accepted as completed by the owner or tenant, it’s critical to have builders risk insurance in place.

Builders risk insurance can be acquired by either the homeowner or by the builder. However, sometimes homeowners aren’t aware of this option, or simply forget… so builders are encouraged to get a policy for themselves so that their materials and construction are covered.