If you are building or are beginning to build a structure, builder’s risk insurance is recommended. Builder’s risk insurance basically safeguards your property while the structure is being built. Your policy can cover things such as burglary, break-ins, criminal damage, weather damage, and things of the sort. It is best to have the policy start on the day building begins as the policy will normally end when the building is complete. The policy can vary according to location and insurance company. If you live in an ocean area you may want to insist on a windstorm policy or perhaps flooding. Make sure you know your policy inside and out before purchasing it.
There are several options in a builder’s policy. There are many details that can go into each policy but here is a quick overview of what is available.
The single shot policy is a policy that is paid for each building in production. This policy is normally recommended for those who build just a few buildings a year. The monthly rate is more of a reoccurring rate. In this policy the builder pays for the building monthly until the project is done. There is also an annual rate policy which can help builders who will take longer to build. There is also a blanket annual deposit that is applied after building costs are evaluated and looked over.
As was mentioned earlier, it is always important to know your policy inside and out. Make sure you know what is covered, for how long, and the exact costs.