When Do You Need Builders Risk Insurance?

November 10, 2014

What is Builders Risk Insurance?

Builders risk insurance, also called course of construction insurance, is insurance designed for buildings during the construction process. Builders risk covers many risks including the structure, and the materials on site waiting to be installed, in storage, or transported to the job site. We usually write the builders risk coverage for the total completed replacement value of the job or project. If you are involved in a construction project in the Seattle or San Juan areas, call us today!

Builders risks policies can be written specifically to cover the construction term; usually three, six, or twelve months. The policy will cover the same perils of most property polices including fire, wind, theft, vandalism, lighting, etc.

Who Should Consider Builders Risk Insurance?

There are a number of parties involved in a new construction project.  Each party has an interest in the project, and might consider builders risk insurance. The contractor, project manager, and building owners all have interests that need to be protected.

Contractors, owners and project managers often mistakenly think their business insurance policy will cover building during the course of construction. There will be no coverage under a standard business policy for property loss, unless it has been added by endorsement or under a separate policy.

Excluded Property Under A Builders Risk Policy

There is a relatively short list of property that is not covered under a builders risk policy. This includes automobiles, landscaping, money, contractor’s tools, equipment and machinery.

If you have purchased builders risk insurance for a project or building, read your policy carefully to become familiar with the policy language and find out whether there are any exclusions or items that will not be covered.

Safe Harbor Insurance is independently owned and locally operated to handle your insurance needs. We focus on San Juan County and Washington State and offer affordable and reliable insurance choices all across the greater Pacific Northwest.

We invite you to complete an online quote, call us at 360-378-2949, or contact us at customerservice@getsafeharbor.com

Serving Friday Harbor, Lopez Island, Oracs Island and Anacortes