Builders Risk Insurance
Moon-Baker is pleased to provide builders risk insurance quotes for your new home, commercial building or remodel & renovation project. Depending on your situation & contract, builders risk insurance can be purchased by either the property owner/developer or the contractor responsible for construction. Builders risk protects you and the financial institution providing your construction loan against insured claims.
Coverage is most often written on an all risk basis providing for direct physical loss by a covered peril to covered buildings while in the course of construction, erection, or fabrication; subject to certain limitations and exclusions. Please consult your agent or policy for full terms and conditions.
Builders Risk policies are typically annual contracts and some are 100% fully earned. Policies are also written on a completed value basis so you will not need to make adjustments to the coverage limit as you progress; we understand you may be working on an estimated completion cost so please request in writing a coverage increase if you ever exceed your current completed value policy limit. Why fully earned and completed value basis - simplification; insurance companies have tailored the rates to account for projects being completed in less than a year and remove the complexity of continually modify the coverage limit.
One of the most important limitations to be aware of is when coverage ceases. All policies read a little differently but here is a sample policy excerpt (be sure to check your own policy for its language): Coverage will end when one of the following first occurs;
- The policy expires or is cancelled
- The covered building is accepted by the purchaser
- Your insurable interest in the covered property ceases
- You abandon construction with no intent to complete it
- The covered building has been completed for more than 90 days
- You occupy the covered building in whole or in part
- You put the covered building to its intended use.
Another important limitation to keep in mind: Builders Risk Insurance policies do not provide liability (general liability or personal liability) coverage. If you are building a personal residence on land that you own and have a homeowner’s policy in force at the time of a covered liability loss it may contain a clause like this: we cover land owned by you on which a dwelling is being constructed as a residence for you; be sure to review your policy for details.
As a Trusted Choice Independent Agent representing multiple insurance companies we can provide quotes from more than one company and accept credit card payments.
Call Todd directly at (580) 421-8075 to get started!