In a previous post, we discussed the basics of builders risk insurance. This type of insurance is typically purchased by the property owner or the general contractor. It is designed to cover the building and materials that will become a permanent part of the completed structure. Buildings are subject to many different risks while under construction, and this type of insurance policy covers the policyholder against damages.
While Builders Risk Insurance is typically purchased by the owner of the building or land, on occasion there will be a requirement in the building contract that the general contractor of the project buy it instead. It’s wise for construction firms and general contractors to purchase this anyway, since it can cover you financially from damage resulting from faulty design, planning, workmanship, and potential material loss.
If a project involves any sort of additions or renovations to an already existing building, the owner’s existing property insurance might cover the construction, but it’s important that you not assume this. Be sure to check on this during the planning stages, and remember that it might be necessary to show proof of insurance for the project for local, city, or state building codes. Ultimately, builders risk insurance is something that can only help you in the long run.
Builders risk is just one of the insurance products that we offer as part of our Business Insurance in Somerset, New Jersey and beyond. Tri-State Insurance Agency has been providing businesses throughout New Jersey, Pennsylvania, and New York with a complete portfolio of insurance products for more than 60 years. Please contact us for more information about our New Jersey Builders Risk Insurance programs at (888) 990-0526.