What is Builder’s Risk Insurance?
Builder’s risk insurance is a type of insurance policy which covers residential and commercial structures while they are under construction or being remodeled, or renovated. Builder’s risk insurance is “coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.”
Builder’s risk policies are typically available for three types of construction; ground-up new construction, remodeling and renovation.
What is Covered?
Builder’s risk is intended to protect construction sites from loss due to certain types of damage. The exact coverage and limitations varies between providers and policies but generally builder’s insurance will cover against loss from:
- theft,
- vandalism,
- fire,
- damage to equipment,
Additional coverage can be purchased to include protection from loss due to:
- flood,
- windstorm,
- earthquake,
- mudslides,
- construction materials,
- temporary structures,
- fencing,
- scaffolding and landscaping.
What is NOT Covered by Builder’s Risk Coverage?
- terrorism,
- acts of war,
- government seizure,
- nuclear hazards,
- injuries or accidents on the job site,
- damage to materials while they are in transit to the property.
If you are thinking about building a custom home in Arizona and have questions about builder’s risk insurance then call the Dunaway Law Group at 480-389-6529 or send us a message HERE.