Are you protected with builders risk insurance? Builders, contractors, construction companies and homeowners are all exposed to risk when engaging in renovations and building projects.
The further you get into a project, the greater the cost, effort, and resources used. There is more to lose if something goes wrong. This is where builders risk insurance can help.
Renovating a home or business, working on a new build, remodeling, or making modifications to an existing structure in Ontario? Our insurance experts will ensure you have the coverage you need to protect your project. Most insurance policies do not cover buildings under construction – builders risk coverage fills this gap.
Here you will learn :
Builders risk insurance is a type of property insurance. It covers contractors and property owners during construction and renovation projects. Coverage is applicable to buildings and locations under construction.
Policies protect contractors, builders, and construction workers against risks from working on a renovations, remodels, or construction projects. It protects equipment used, materials, structures, and labour against perils. They include fire, vandalism, and theft, once the project has started.
Unexpected costs can arise on building project jobsites. Property damage and project delays can increase project costs and put a big financial strain on contractors and property owners.
Since most commercial property and homeowners insurance policies exclude properties under the course of constriction, it’s important for you have builders risk insurance.
Without a builders risk policy, you would have to absorb the costs. This includes property damage, delays and other project issues during the renovation or construction period. You may also have to purchase builders risk to show proof of insurance. For some, you need it to comply with local or regional bylaws.
Any party involved in the project can purchase coverage. It is most commonly purchased by the lead contractor or the property owner.
Here’s a list of who could buy builders risk insurance :
There are two main types of builders risk insurance coverage :
Builders all risk insurance provides protection from all risks that could damage your property under construction. Risks not covered are specifically listed as exclusions in your policy.
Common perils included in your policy are :
Builders risk insurance is not applicable to renovations or construction projects before they start or after the project is complete. Builders risk ONLY covers losses that happen while the project is in progress.
There are certain perils that are commonly excluded from the policy. You may be able to get coverage as an add-on or separate policy. Common exclusions are :
Hard costs, such as materials, supplies, and labour are part of builders risk coverage. However, soft costs can have just as much of a financial impact on a building project. Soft costs can include accounting fees, developer’s fees, real estate taxes, consulting fees, and additional insurance costs.
If a project loss occurred due to property damage or delays, these costs can add up. They can have a big financial impact on property owners and contractors. Most builders risk policies do not cover soft costs outright. But, you can add them as a policy endorsement to your builders risk insurance coverage. The soft costs included will be specified in your policy.
A builder’s risk insurance calculator can help you estimate the amount of coverage you will need for your project. Builders risk policies will pay for damages up to your coverage limit. Therefore, accurately estimating your coverage needs is important.
A builder’s risk cost calculator estimate should reflect the completed value of your structure. The value of your home or property after the construction is complete. Consider all labour costs, materials, and other project costs, minus the land value. The best source of this information is your renovation project budget. Your budget will give you a good indication of how much coverage you need in your policy.
The cost of builders risk insurance can vary greatly from project to project. Factors such as project scope, size, location, type of work, project length, and risks are a consideration. Get a builders risk insurance quote to compare your cost options.
Costs can vary from project to project. The average cost of builders risk insurance is about 1% to 4% of the total project cost. For a $100,000 project, the cost for insurance would be between $1000 and $4000. Projects with greater risk exposure will cost more to insure.
The project owner, contractor, construction company, or the home or property owner can purchase builders risk insurance.
Builders risk policies are written for the expected length of the project. Policies are written for terms of 3, 6, or 12 months. If the project is not complete on time, you can extend coverage. Usually one extension per project is granted.
Need builders risk insurance in Ontario or Alberta? We’ll help you choose the right amount of builders risk insurance to meet your project needs. We help contractors, builders, construction companies, and property owners get affordable coverage. Get protection while a project is in progress.
Discover why so many contractors, builders and construction professionals trust ThinkInsure :
Follow these tips to get a builders risk insurance cost estimate :
Builders risk insurance is a short term policy only for when your property is under construction. Commercial property insurance covers your location against common risks and loss while your business is up and running. You can take out a commercial builders risk insurance policy to cover your business during renovations.
You need a builder’s risk policy when you are doing a renovation on your home. Your home insurance policy does not cover you when your home is under construction. You can take out a residential builders risk insurance policy to cover your home during renovations.
Learn more about builders risk insurance by checking out these commonly asked questions :
Yes. You should take out a builders risk policy, or similar, any time you are doing significant work on your home.
Who purchases the policy comes down to the agreement between the parties and their level of comfort. Some recommend the property owner to purchase the policy. They own the structure and they would be the beneficiary of a claim.
Comparing builders risk insurance quotes and coverage is the best way to find the cheapest rates. Comparison shopping is the best way to save money on your policy.
Blanket builders risk insurance is a more far reaching policy. It provides coverage if you are working on more than one structure. It’s applicable for commercial projects and projects with multiple units.
Rates and coverage can vary from insurer to insurer. Our business insurance experts will help you find the best builders risk policy for your project.
Wrap up liability insurance is a type of blanket coverage. It protects all parties involves in the project against common liabilities. This type of coverage includes builders risk as part of the coverage.
Course of construction insurance is just another name for builders risk insurance. It offers the same type of coverage.