A Guide to Builders Risk Insurance

Safeguarding Your Construction Endeavors

Embarking on a construction project, whether residential or commercial, involves numerous risks. Builders risk insurance is essential to protect your investment during the building phase. This guide explores the various builders' risk insurance coverages offered by Veritas, ensuring your project is well-guarded against potential threats.

Essential Questions for Builders Risk Insurance

To determine the best builders' risk insurance policy, it’s crucial to ask the right questions. Here are some key considerations:

1. Completed Structure Coverage

   • Is there insurance for completed structures that haven’t yet been sold?
   • Can this coverage be extended for over a year?

2. Subcontractor Protection

   • Does the policy cover subcontractors' interests while on-site?

3. Profit Inclusion

   • Can you include your projected profit in the total value of the construction project?

4. Material Theft Coverage

   • Is there protection against the theft of building materials not yet installed?

5. Adequate Buyer-Provided Insurance

   • If the buyer provides builders risk insurance, are the coverage limits sufficient to protect your property?

6. Occupancy Before Closing

   • Does the policy provide property coverage for buyers who occupy the home before closing?

7. Trade-In and Model Homes

   • Can you insure trade-in homes, unsold dwellings, model homes, and their contents?

8. Ordinance or Law Coverage

   • Is there an Ordinance or Law coverage included at no additional charge for new construction?

9. Combined Policy for Existing Structures

   • Can you cover both existing structures and their improvements under a single policy?

Standard and Optional Coverage Options

Builders risk insurance policies vary greatly, so it’s important to ensure your policy includes comprehensive coverage options:

1. Transit and Temporary Location Coverage

   • Protects property in transit or at temporary locations with predefined limits.

2. Sewer and Drain Backup

   • Covers damages from sewer or drain backups with specific limits based on project value.

3. Valuable Documents

   • Provides coverage for valuable papers and records with set limits.

4. Debris Removal

   • Includes coverage for debris removal with limits adjusted according to project value.

5. Pollutant Cleanup

   • Covers pollutant cleanup costs with defined limits.

6. Fire Department Charges

   • Covers charges from fire department services.

7. Soft Costs

   • Protects against additional costs like loan interest, insurance premiums, advertising, and more.

8. Business Income Protection

   • Covers actual business income losses, including rental income.

9. Natural Disaster Coverage

   • Includes protection against flood and earthquake damages.

10. Occupancy Coverage

    • Provides coverage for properties with specific occupancy requirements.

11. System Testing

    • Covers the testing of building systems during construction.

Value-Added Services

Choosing the right builders' risk insurance policy also involves considering additional services provided:

1. Loss Control Programs

   • Financially stable, A-rated carrier with comprehensive loss control programs.

2. Flexible Billing and Claims

   • Offers flexible billing options and 24-hour claim reporting.

3. Online Tools

   • Provides online tools for efficient claim monitoring and management.

About Veritas

Veritas specializes in providing tailored builders' risk insurance solutions for various construction projects. Our policies offer extensive standard and optional coverages, ensuring comprehensive protection throughout the construction phase. For more details, explore our resources on workers' compensation and roofing insurance.

Conclusion

Builders' risk insurance is a vital aspect of any construction project, offering protection against unforeseen risks. By asking the right questions and understanding the available coverage options, you can select a policy that offers robust protection for your project.

For more information on securing the best builders risk coverage for your project, visit Veritas and get started today.