Builders risk insurance, also called course of construction insurance, is insurance designed for buildings during the construction process.

As a builder (or property owner) you know that during construction, projects are subject to a wide variety of risks or damage. While under construction, a project could suffer from damages due to high winds, fire, or sabotage of some nature. Builders risks policies can be written specifically to cover the construction term; usually three, six, or twelve months and 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 a builders risk insurance policy for a project or building, make sure to 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.

Our agents at PMA Insurance Services,  are experts when it comes to making sure you have the coverage you need for your building project.  If you are involved in (or planning) a construction project in the near future, call us today at (703) 449-1327!