How To Find the Right Builders Risk Policy

How To Find the Right Builders Risk Policy

Builders Risk Policy

Consumers are surprised to learn that home under construction isn’t always insured by the builder. If a contractor has advised you to take out a Builders Risk policy to cover the property while it’s being built, here is some guidance on how to find the right coverage.

Work With an Experienced Agent or Broker

It is difficult to anticipate potential loss exposures during construction if you’ve never had a home built before. Find a professional who has written policies for a similar risk to get the best advice and policy for your project.

Find Out What Is or Isn’t Covered

Be aware that Builders’ Risk policy often excludes things like defective workmanship and liability. Make sure you understand the scope of the coverage before purchasing the policy and augment or supplement accordingly.

Know When Coverage Begins and Ends

Because the policy is meant to cover a dwelling under construction, the rules about when the coverage begins and ends are strict and often vary. Make sure you are aware of the criteria the policy stipulates to be considered in force such as effective and expiration dates, phase of construction, issuance of a certificate of occupancy, and other milestones.

A loss can happen any time, but selecting the right Builders Risk policy is an important step in making sure your dream home becomes a reality.