Builder’s Risk Insurance
What is builder’s risk insurance?
Builder’s risk insurance is a unique type of property insurance which covers buildings, or parts of buildings, that are under construction. This could include:
- New homes or commercial building constructions
- The main structure of the construction/renovation
- The materials being used in the construction/renovation
What does this policy cover?
A builder’s risk plan covers the main structure and construction materials. This includes fencing, landscaping materials, or indoor and outdoor fixtures. Coverage protects them from:
- Storm and lightning damage
- Vehicle/aircraft damage
- Theft of materials
This does not include personal belongings and furniture, which would be covered under a homeowners insurance policy. It also doesn’t cover damage which results from faulty design, planning, or materials.
Coverage lasts only as long as construction does. Other coverage exceptions include earthquake or flood damage, both of which are separate types of insurance.
Do I need builder’s risk insurance in Connecticut?
Many financial lenders require property owners to have builder’s risk coverage before starting construction or renovation. If you are a contractor, many building owners will also require you to have this policy.
Although not always necessary, risk management professionals recommend purchasing coverage when:
- Constructing a new building from the ground-up
- Renovating part of an existing building
If you or your company are undertaking a significant construction project, get in touch with the local insurance agents at State Wide CT about whether a builder’s risk plan is right for you. We specialize in finding the best coverage for the best price, and we can help you customize the plan to your unique needs.