Builders Risk
For many, buying a home is a milestone toward achieving the American Dream. An even bigger milestone is building your own home—a chance to create a space that fits your family’s needs and fulfills your vision. With this exciting process, however, comes the responsibility of ensuring everything is properly protected, and that’s where builders risk insurance comes in.
Builders Risk Insurance: Protection During Construction
If you’re building a new home, it’s important to make sure you’re covered in case something goes wrong during construction. Builders risk insurance provides coverage for the unique risks that come with construction projects. If you’re borrowing money for your build, your lender will likely require this insurance. Even if you’re financing the project yourself, having builders risk insurance is a smart move—it can protect you from large financial losses if something goes wrong.
What Builders Risk Insurance Covers
Builders risk insurance typically covers several types of risks, such as:
- Damage to the structure: It covers damage to the building caused by risks like fire, collapse, certain water damage, and other hazards.
- Theft of materials: Protects against the theft of building materials, whether on-site or about to be installed.
- Debris removal: Helps cover the costs of removing debris after a covered loss so your project can move forward smoothly.
This type of policy covers not just the building, but also materials such as outdoor fencing, landscaping, paving, and fixtures that are part of the construction. However, builders risk insurance is different from homeowners insurance—it does not cover personal belongings or furniture, so you should avoid moving in any items until the home is finished and you have homeowners insurance in place.
Renovations and Additions
If you’re renovating or adding to an existing home, your homeowners insurance may not fully cover the project. In cases of major renovations or additions, it’s wise to speak with an insurance professional to determine if additional coverage is needed. Builders risk insurance can provide protection for these large projects, ensuring that unexpected problems don’t lead to costly setbacks.
Securing the Right Coverage
It’s important to know that insurance companies often treat homes under renovation differently from fully occupied ones. Moving out temporarily for a major renovation can affect your coverage, so it’s a good idea to review your policy before the project begins.
At Twin Creek Insurance, we’re here to help you navigate the process of finding the right builders risk insurance. Our team will work with you to make sure your construction project is covered from start to finish. We can also assist in verifying that your contractor has proper insurance in place, including ensuring you’re listed as an additional insured on their general liability policy.
Ready to Protect Your Project?
Building or renovating your home is a major undertaking, and it’s important to be prepared for any potential risks. Contact us at Twin Creek Insurance to ensure that your project is fully protected. Whether you prefer to call, stop by our office, or fill out a quote form online, we’re ready to help you secure the right coverage for your dream home.