You are almost done with building a house and suddenly you hear it has collapsed! If your builder carries a builders risk insurance policy, you can easily cover this risk by filing your property claim. If not, you will wipe your tears as you count your losses! As soon as you place building materials on the job site you should get insurance for the upcoming house.
There are four simple builders risk insurance policies. For volume builders, the Monthly Reporting Form-Annual rate, the Monthly Reporting Form -Monthly rate and the Blanket Annual Deposit – this being recommended as it reduces the administrative work and the risk of a house going without being covered, as an audit is done just before the policy expires.
For five or less houses a year, the Single shot policy is suitable although the premiums are higher and the administrative work is more. Note that you can reduce premiums on any of the above if you deduct costs like blueprints, water tap fees and other costs that cannot be lost in a disaster.
If you do not have a builders risk insurance policy, urgently contact a contractor insurance agent!
Since builders, also known as contractors or subcontractors and other people who build things, risk their life doing the things that they are doing and are constantly hurt by the machines that they use on a day to day basis, then it is only right that they are given builders risk insurance that is just for them and all the hardships that they face.
This construction insurance also covers some of the major projects that construction workers do. Lets say for instance, you are a contractor and you are planning a huge project that could possibly cause you to have to dig up the ground, then there is something on this policy that covers all of that.
Builders risk insurance is always a good idea when having any building or other project built, renovated, or repaired. This helps to recoup losses that might be incurred, including theft, fire, and damage. The choices are nearly endless when it comes to optional coverage’s, and includes such things as earthquakes and floods. Other forms of optional, or “soft coverages” include legal and marketing expenses, expenses related to delays, and additional interests expenses.
When purchasing builders risk insurance coverage the first place you should check is with your local insurance agent. Often times builders risk insurance will be discounted if you have other policies, such as home or auto, with the insurance company.