The best place to learn the ins and outs of a builders risk insurance policy is to talk with a trained, experienced insurance agent, one who specializes in small business insurance or other types of contractor insurance. Builders risk insurance is a policy that covers a variety of claims that can come up during the construction of a building. These risks can be apparent anywhere from the planning stages to the final day when the keys to the building are handed over to the owner.
A knowledgeable insurance agent is the best person to advise you on the coverage you can expect and the price you will pay. These types of policies can be tricky, so be sure to interview your prospective insurance agent before taking their advice to be sure they have the training and experience required to understand the subtleties of a good policy.
When talking to your insurance agent you should come prepared with a few important pieces of information. Start with a copy of the building contract. This will provide much of the detail needed to pinpoint the exact coverage you need. Be prepared with a description of the project, a cost estimate and some facts and figures about the type of construction being undertaken, the number of stories in the finished structure and the location on which you will build. It's to your advantage to bring up any safety features that will be installed in the building as well. Such items as sprinklers, protective fences or security systems or guards during the construction phase can earn you credits on your eventual premium.
The types of coverage you can expect to discuss run the gamut of every phase of construction. You should be looking for a builders risk insurance policy that covers any theft or damage to building materials on the job site. Equally important, you should consider coverage for your building material while in transit or while being housed in storage at an off-site location until needed.
What if you've decided to install material in your building that does not meet the local codes and ordinances? You might want to consider coverage against the cost of materials you can no longer use due to local law. Perhaps your sub-contractor makes an error or omits critical material from the initial bill of material. Coverage for errors and omissions is something you might want to work into your builders risk insurance policy.
Obtaining your builders risk insurance policy through a reputable insurance agent will likely save you time, money and aggravation in the long run. An agent can offer you simple claims services, often with 24-hour reporting capability. They are available to provide quotes and upgrade coverage if needed. Seeking professional help is good business practice.
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