Construction projects are often very complex as builders risk insurance is essential to protecting your investment. Often, newcomers to the industry get confused with the working definition of the coverage provided. Speaking with Moon – Baker Insurance Agency Inc. of Ada, OK will help to get a better understanding of builder’s risk insurance and how it’s the backbone of your construction business.
What is Builders Risk Insurance
Builders risk insurance is specialized coverage for a structure under construction. However, no two building projects are alike, so the coverage will differ. The goal of builders risk insurance is to help a construction company with work property (materials, supplies, and equipment) damage losses due to severe rainstorms, unexpected explosions, theft, vandalism, and other natural disasters. Usually, the wording of the coverage is dictated by the construction project itself. Typically, the length of a builder’s risk insurance policy expires on the expected completion date of the project.
What Does Builders Risk Insurance Cover?
The coverage offered by the builder’s risk insurance policy is strictly for the construction project. Also, covered in the policy are the project’s materials, supplies, and work equipment. Builders risk insurance protects these items on-site, in transit from another location, and if stored in an off-site space.
On more complicated construction projects, the coverage found in builders risk insurance policy will have a provision for protection on losses that pertain to a failure in meeting the construction project’s deadline. The coverage is designed to protect a business from sales and rental income loss, penalty interest rates on previous loans, and possible pending real estate taxes. As we all come to experience, those expenses will add up quickly when a construction project is delayed.
Because builders risk insurance is different from each construction project, it’s smart to speak with a member of Moon – Baker Insurance Agency Inc. of Ada, OK. Their experience can design a policy that protects your business needs. Schedule an appointment and speak with someone today.