Builders Risk / Renovation Insurance
helps protect properties under construction.
Safeguard your property as your home is being built or renovated with builders risk insurance.
Under construction? You might need this coverage.
Builders risk insurance is a form of property insurance that covers the period the property is under construction/renovation.
What builders risk insurance covers.
It can cover the existing building and the improvements or cover a brand new build. The coverage can be Special Form (all perils except what is specifically exclluded in the policy contract) or Basic/Named Perils. Note that Basic Perils coverage usually does not cover water damage, falling objects, weight of snow, and collapse.
Do you need builders risk insurance?
Your homeowner's policy is not designed to cover renovations beyond minor cosmetic upgrades. It does not cover structural improvements (adding square footage, adding a floor, foundation work, or moving weight-bearing walls). Discuss renovation plans with a trusted agent to see if you need a builder's risk policy for the duration of the work.
Coverages that are not included.
Similar to a homeowner's policy, flood damage and damages due to earth movement are not covered unless you purchase these specific coverages. Depending on the policy form there may many other situations/events not covered. Coverage could be replacement cost, ACV (actual cash value), or Agreed Amount. There may be coinsurance clauses in place that will impact a claim payout if the property is not covered properly. Don't assume, be sure to discuss these items in detail as builders risk policies vary from policy to policy much more than a personal lines homeowner's policy.
Do you need builders risk insurance to protect your property while under construction? Contact us to go over the unique needs of your property and the coverage options available to you.
