Top 5 Installation and Builders Risk Insurance Questions

1. Does builders risk insurance have any liability coverage? Builders risk doesn’t cover liability insurance. It provides the property coverage on the construction project. How much property it covers will be dictated by how the policy is setup.

2. What should be included for the construction cost on a builders risk policy?
The construction cost reported on builders risk insurance should include all labor, construction, and management fees. You should also include materials, equipment, machinery, and supplies that will be used in the construction and will become part of the completed project.

3. Should demolition be included in construction cost?
No. Since the property you are demolishing is not going to be repair or replaced, it should not be included on a builders risk policy.

4. When does Builders Risk insurance begin?
Coverage begins on the estimated date begins work on the application and designated by the insured or project manager. This should be the same date that work is scheduled to begin on the site and doesn’t need to be during the demolition phase.

5. What if a construction project goes past the estimated date of completion of work?
Just make sure to keep your insurance agent informed on completion date. They can ask for an extension on the policy or the can re-write another policy that will extend the date out for you.