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!