What is Builders Risk Insurance?
Builders Risk Insurance in New Jersey, New York & Pennsylvania covers buildings that are under construction or undergoing substantial remodeling. These types of projects present different risks than occupied residential property or operating commercial buildings. Commercial property and homeowners insurance policies typically will exclude buildings that are under construction.
Builders risk insurance, on the other hand, covers the property owners’ or contractors’ interest in materials at the job site before they are installed, in addition to construction materials in transit designated for the renovations, remodel or construction. This type of insurance also covers the value of the property being constructed until it is complete.
Who is covered?
The policy itself is generally purchased by the property owner or the general contractor, and the question of who is responsible for the acquisition of this coverage if often specified in the contract documents. The insureds that are under a builders risk insurance policy will usually include the building or homeowner, the contractor, and the project subcontractors.
What is covered?
As a general rule, builders risk insurance is designed to cover the building and building materials that will become a permanent part of the completed structure. With this in mind, contractor’s tools and equipment might not be covered. It’s important to ask your agent for details regarding your policy.
Tri-State Insurance Agency provides a comprehensive business insurance portfolio, including Builders Risk policies, and construction insurance in Pennsylvania, New Jersey and New York. Give our professionals a call toll-free at 888.990.0526.