Is your company with a new building or are you renovating an existing structure? to Consider Buying a Builders Risk Policy to Cover Property Exposures. Some commercial property policies include coverage for this exposure, but there are often restrictions such as the following:
- A sub-boundary for newly built buildings.
- Restrictions on coverage for building materials.
- Restrictions or Exceptions for Time Element Coverage.
- Lack of willingness on the part of the property insurer to cover the exposure.  The solution is to buy a Builders Risk policy. This is a policy designed to cover property during construction. It is suitable for new construction, remodeling and renovation. Although there is no standard form for Builders Risk, most forms provide coverage on all risk bases and include coverage for properties at storage sites and during transportation. The coverage limit for the structure is the total calculated completed value. However, prices for new construction can often be lower than completed construction speeds due to the smaller exposure in the early construction stages.
Another important feature is coverage for "soft costs" which are costs that arise as a result of a delayed completion due to loss from covered risk. Examples of soft costs can include additional advertising costs, overtime and extra fees for architects.
Due to the specialized warranty for this exposure, it is very important that you contact your independent agent immediately when planning a new or renovation exposure. This allows them to place the coverage with the carrier with the best coverage and pricing for the exposure.
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