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UpdatedDecember16,2014.

WhatisBuildersRiskInsurance?

BuildersRiskInsurance,peoplealsorefertoitasCourseofConstruction,issomekindofpropertyinsurance.It'saformofinsurance,whichcoversabuildingwherethebuildingispresentlybeingconstructed.Itcancoverjust

thestructure,oralsothematerialsonsitewaitingtobeinstalledortransportedtothejobsite.

Thebuilder'sriskinsurancepolicywillpayfordamagesuptothecoveragelimit.

Thelimitmustaccuratelyreflectthetotalcompletedvalueofthestructure(allmaterialsandlaborcosts,butnotincludinglandvalue).Theconstructionbudgetisthebestsourcefordeterminingtheappropriatelimitofinsurance.

BuildersRiskinsurancepoliciescanoftenbewrittenintermsofthreemonths,sixmonths,or12months.Iftheprojectisnotcompletedbytheendoftheinitialpolicyterm,itcanoftenbeextended,butusuallyonlyonetime.

WhatDoesaBuilder'sRiskCovers?

Thebuildersriskpolicywillprovidecoveragefordamagedonetotheinsuredstructurefromawidevarietyofevents.Damagefromthefollowingeventswillbecoveredbymostpolicies:

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What is Builders Risk Insurance?InformationofcoverageandexclusionoftheBuilder'sRiskInsurance.

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Youshouldreadyourcourseofbuilder'sriskinsurancepolicytobefamiliarwithitslimitationsandexclusions.Limitedcoverageisprovidedforcollapse.Standardexclusionsinclude:

Animportantexclusionwhichshouldbereadinitsentiretyexcludescoveragefordamageresultingfromfaulty:design,planning,workmanshipandmaterials.Earthquakeandfloodcoveragemaybepurchasedinsomeareas.

Extensionsofcoveragemaybeprovidedforcertainsituations.Thecoverageforthesemaybelimited.

Commonbuilder'sriskinsurancecoverageextensionsinclude:

ImportantNotes

Someadditionalinformationthatyoushouldknow:

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Fire

Wind(maybelimitedincoastalareas)

Theft

Lightning

Hail

Explosion

Vandalism

Vehicles/Aircraft

Earthquake

Employeetheft

Waterdamage

Weatherdamagetopropertyintheopen

War

Governmentaction

Contractpenalty

Voluntaryparting

Mechanicalbreakdown

Propertyintransit

Acoverageextensiontoprotectyourpropertyfromlosswhilebeingtransportedtothejobsite.

Scaffolding

Coverageisextendedtoapplytoscaffolding,constructionformsandtemporarystructures,butonlywhiletheyareatalocationyouhavereported.

Propertyintemporarystorage

Propertythatwillbeusedorinstalledinthesecuredlocationandpertainingtotheinsuredcompany.

Firedepartmentservicecharge

Whenthefiredepartmentiscalledtosaveorprotectcoveredpropertyfromacoveredcauseofloss.

Debrisremoval

Thebuilder'sriskinsurancepolicywillpayyourexpensestoremovedebrisofcoveredproperty.Thisdebrismustresultfromalossthatiscoveredunderthisform.

SewerandDrainBackup

Waterdamagefromthebackupofsewersanddrainsisusuallycovered.

Valuablepapers(siteplans,blueprints,etc)

Theinsurancewillnotcoverthepropertyofothers.

Subcontractorsarerequiredtohavetheirowninsurance.

Thereisnocoveragefortoolsorequipment.

Nocoverageforliability.

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Forspecificterms,coverageandexclusions,theoriginalbuilder'sriskinsurancepolicywilldeterminetheapplicablecoverage.

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Itdoesnotcoveraccidentsinthejobsite.

Usuallycoverageendswhenthebuildingiscompleted,oroccupied.

Thepremiumfortheannualpolicyisfullyearned.

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