Introduction to Builders Risk Insurance
We’re Portsmouth Atlantic Insurance, your trusted partners in safeguarding your construction projects. Today, we’re diving deep into the world of builders risk insurance, shedding light on this essential aspect of construction protection. We understand that insurance can be a complex topic, so let’s break it down in a way that’s easy to grasp.
Builders Risk Insurance: A Comprehensive Overview
When embarking on a construction project, whether it’s building a new home, renovating your existing property, or installing new features, one thing is certain – it’s a substantial investment of both time and money. That’s where builders risk insurance comes into play. In a nutshell, builders risk insurance is your shield against unexpected losses and damages during the course of your construction project.
Who Needs Builders Risk Insurance?
Now, you might be wondering, “Do I really need builders risk insurance?” The answer is a resounding yes, especially for residents here in the beautiful state of New Hampshire. While your existing homeowners insurance policy may provide some coverage, builders risk insurance is specifically designed to protect your construction or renovation project.
Whether you’re the property owner, contractor, or lender involved in the project, having a builders risk policy in place is crucial. It can also extend its protective umbrella over the architect or engineer overseeing the project. If your project is financed, your lender will typically require proof of builders risk insurance.
For smaller projects where you’re still residing in your home during the work, your existing homeowners insurance may suffice. However, for renovations and significant additions, it’s advisable to consult your home insurance agent to confirm coverage. In most cases, builders risk insurance is the ideal choice.
Understanding Builders Risk Insurance Coverage
What Is Typically Covered by Builders Risk Insurance?
1. Building Repair/Replacement: In the unfortunate event of damage to the structure, your policy can cover the costs of repair or replacement.
2. Materials and Supplies: All the materials and supplies needed for your project are safeguarded under this policy.
3. Tools and Equipment: Expensive tools and equipment used in construction are covered, ensuring you won’t bear the cost of replacing them out of pocket.
4. Furniture and Fixtures: Any furniture or fixtures being installed as part of your project are included in the coverage.
5. Outdoor Property: If your project involves outdoor components, such as a new deck or landscaping, these are also protected.
6. Debris Removal: Cleanup and removal of debris resulting from covered losses are covered expenses.
7. Property in Transit or Off-Site: Materials or equipment in transit to your construction site or temporarily stored off-site can be insured.
8. Theft: In the unfortunate event of theft, your policy can help replace stolen items.
9. Damages from Vandalism: Acts of vandalism can be financially devastating, but with builders risk insurance, you’re protected.
10. Damages from Fire: Fire can cause extensive damage; this policy will cover the costs of repair or replacement.
11. Damages from Storms: New Hampshire’s weather can be unpredictable, and your policy covers damages from lightning, hail, hurricanes, and strong winds.
12. Damages from Earthquakes (optional): While not a common occurrence in New Hampshire, earthquake coverage is available as an optional add-on.
13. Damages from Flood (optional): Flooding can happen, and you can opt to include flood coverage in your builders risk policy.
What Is Not Covered by Builders Risk Insurance?
It’s essential to be aware of the limitations and exclusions of your builders risk insurance policy. Here’s what is typically not covered:
1. Accidental Damage: Accidentally dropping something or causing damage due to negligence is generally not covered.
2. Damages to Someone Else’s Property: Your builders risk policy is designed to protect your project, not other people’s property.
3. Intentional Property Damage: Deliberate acts of damage are not covered.
4. Wear and Tear: Regular wear and tear over time is not considered a covered loss.
5. Claims of Bodily Injury: Builders risk insurance is property-focused; it does not cover bodily injury claims.
When Should You Get a Builders Risk Insurance Policy?
The good news is, it’s never too late to secure builders risk insurance, even if your construction project is already underway. We collaborate with several insurance companies offering builders risk policies, and some are willing to consider insuring your home, even after construction has started.
Factors Affecting Builders Risk Insurance Cost
The cost of builders risk insurance can vary widely based on several factors, including:
1. Extensions Included: Additional coverage options and extensions can increase the premium.
2. Site Address: The location of your project plays a role in determining the cost.
3. Type of Project: The nature of your construction project, whether it’s a new build, renovation, or installation, impacts the premium.
4. Project Budget: The total budget for your project is considered when calculating the cost.
5. Number of Stories: The height of your building can affect the premium.
6. Square Footage: The size of your project area is a factor in the cost.
7. Public Protection Class: The level of public fire protection services in your area can influence the premium.
8. Actual Cash Value of Existing Structure: For renovations, the value of the existing structure is taken into account.
9. Year Built: The age of the property can affect the cost of coverage.
10. Projected Structural Alterations: The extent of structural changes planned for your project can influence the premium.
In conclusion, builders risk insurance is an indispensable tool for protecting your construction project in New Hampshire. Whether you’re constructing a new home, renovating, or making significant additions, having the right coverage can make a world of difference when the unexpected occurs.
Don’t wait until it’s too late; consult with Portsmouth Atlantic Insurance today to explore your builders risk insurance options and ensure your project is safeguarded from start to finish. We’re here to assist you in making informed decisions and securing the protection you need. Your construction journey in the Granite State deserves nothing but the best, and we’re here to provide it.