Builder’s risk insurance is not like any other commercial property insurance which covers completed buildings. Instead, it protects the buildings and their structures even when they are under construction. Most insurance companies such as NY Insurance Hub would recommend you to begin the policy before the materials arrive at the construction site and end it when you sell the property or it becomes ready to be occupied.
As the construction jobs are high-risk jobs, the client contract might need you to carry the builder’s risk insurance, may it be in New York or any other city or state. However, the property owner or the developer might already have insurance coverage that protects the business.
The building risk insurance coverage amount should always show or highlight the total estimated value of the structure that is completed. You should add the cost of all construction materials, land value, and labor so that it gauges all the coverage needs. If the building collapses, there would be limited coverage for certain insurances. Hence, you should read the policy well to familiarize yourself with the relevant covers. If you are looking for insurance, you could easily find a NY insurance quote online.
What Builder’s Risk Insurance Covers
It provides for the damages of a building that is presently under construction, at various events. The policy covers damages that are caused as a result of Theft, Lightning, Fire, Explosion, Hails, Vandalism, Vehicles, and Wind. However, there are some add-on covers if you opt for the builder’s risk insurance policy. It would be for clearing and removal of debris, earthquake, terrorism, third party liability, damage surrounding the property which is not a part of the contract work, maintenance visit, or extended maintenance cover to cover the accidental damage or loss while rectifying during the maintenance period or rectifying some faults during the construction process.
What Builder’s Risk Insurance Does Not Cover
The Risk policies usually exclude the damages that occur from floods or hurricanes. However, these are included in certain areas. It doesn’t cover employee theft, normal rust, wear and tear, corrosion, and incidents involving faulty materials and works. However, they may be included and exclusions for the mentioned factors.
The insurance coverage might vary between builders and structures. When you review the builder’s risk insurance options, make it a point to check if structures and buildings are mentioned and where only one or both are covered. When looking from an insurance point of view, a building is a structure that would be occupied soon and this includes houses and apartment buildings. However, not all structures are buildings. A temporary structure like scaffolds won’t be occupied and is not considered a building. If you would require coverage for structures beside the building, you might not be covered. Have a conversation with the insurance agent to understand the details of the builder’s risk policy and about the coverage.
Additional Insurance Policies to be Considered
Builder’s risk and general liability insurance are not the only coverage contractors might need. They could also look into various other forms of insurances such as:
·Contractor’s Equipment Insurance: It is a form of insurance that covers insurance for large equipment such as tools, bulldozers, and other building materials. This insurance can reimburse you for the damaged or stolen equipment which is less than 5 years old. This includes the items that are in transit as well.
·Auto Insurance: If the contract or constructing business has vehicles, getting commercial auto insurance might help in covering the damages that occurred from accidents. If the employees use their cars to commute for work purposes other than commuting, you could opt for hired and non-owned auto insurance.
·Professional Liability Insurance: This is also known as omissions and errors insurance as it can cover you if a client sues you over an oversight or a construction mistake.
·Worker’s Compensation Insurance: Job-related injuries might happen on the safest construction sites making this insurance an important one. Most states would require businesses with employees to carry worker’s compensation that pays for the injured employees’ medical bills and reimburses them for the lost wages.
NY Insurance Hub, builders risk insurance New York could be complicated but it is essential to risk management that can be opted by construction company business owners and general contractors. However, before you buy coverage, you could talk to the insurance agent to discuss the policy that might work the best for you. You could find the right insurance coverage at the best price if you look up insurance companies online. They could answer your questions and provide expert guidance to help in protecting the business.