While under construction, buildings are prone to numerous risks, including fire, theft, and severe weather conditions. Contractors secure construction insurance, specifically builders risk, to protect properties that are under development and ward off potential liabilities.
What Builders Risk Covers
The insurance protects against risks that commonly occur during construction projects, including:
- Vandalism and theft
- Hail, lightning, and other severe weather
- Vehicular accidents
Builders risk is just one of many forms of construction insurance, and it does not cover every type of incident. Generally, incidents such as flooding, high winds, and earthquakes are not included in this type of coverage. It is important for contractors to check with insurance agents to better understand their level of protection.
What Properties are Covered?
Builders risk covers properties while they are under a contractor’s control. Also included in this coverage are any equipment and building materials. In the event that an incident leads to the loss of equipment or delays in construction, then coverage can be extended through to the end of the project. Any lost sales or rental costs that incur due to delays may also be covered. When trying to ensure that their properties are protected from any liabilities, contractors should secure a robust construction insurance package that includes builders risk coverage.