What is “Builder’s Risk” or “Course of Construction” insurance?
Builder’s Risk insurance is a form of property insurance specifically designed to cover buildings under construction. The rates for Builder’s Risk insurance are discounted because there is very little property at risk when construction begins. Builder’s Risk insurance is not a “standardized” coverage from and coverage varies from insurance company to insurance company. SSP Insurance Services works with numerous companies, to offer the broadest policies available in the market today. In addition to the structure, policies provide coverage for property in transit to the job site and property stored at temporary locations awaiting delivery.
Does Builder’s Risk insurance provide liability coverage?
No. Builder’s Risk insurance is primarily property insurance. Liability coverage is usually purchased under a separate Comprehensive General Liability policy for injuries to the general public or under a Workers Compensation policy to cover workers injured on a job site.
Can I busy Builder’s Risk insurance after construction has started?
Sometimes, but it is not a good idea to delay coverage. If you wait until the structure is under construction, your coverage options become limited. If you project is more than 25% complete, your application will require special underwriting (i.e., increased rates or denial of coverage).
If the structure is more than 50% complete, it may be impossible to find insurance coverage that protects you as the building owner.