Builders Risk Insurance

Building a new home, office or adding onto an existing structure is exciting. However, before the lenders will lend the money, builders risk insurance must be in place. Our Builders Risk Policy is the industry leader offering broad, flexible coverage options to meet the special insurance needs of even the largest residential or commercial construction project. Our competitive coverage includes an extremely broad policy.

Builder’s risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction. 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.

Why would you need it?

Buildings are subject to many different risks while under construction. They may catch fire, be damaged by high winds, or fall victim to other force majeure. A principle of common law is that any new construction or other improvement to land becomes property of the owner of the land – the title holder – once there has been an “improvement” to the owner’s site. The general contractor may be responsible for any losses caused by his own negligence, but the owner is responsible for most other losses. Builder’s risk insurance indemnifies against some of these losses.

Builder’s risk insurance usually indemnifies against losses due to:

  • Coverage for theft of materials from the moment they’re delivered to the job site
  • Protection for materials in-transit and at temporary locations
  • Coverage for materials that are installed or uninstalled
  • Coverage for losses due to ordinances or laws
  • Fire Department Service Charges
  • Errors and Omissions coverage
  • Flood & Earthquake coverage optional
  • Lightning, wind, and similar forces

Coverage is typically during construction period only, and is intended to terminate when the work has been completed and the property is ready for use or occupancy. For more information on Builders Risk Insurance, contact Davis Insurance Group at 606-387-4297 or fill out our online form for your FREE Builders Risk Insurance Quote


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