Builders Liability Insurance Options

If building your dream home is in your future then so should builders liability insurance also be. If you are not well versed on what builders liability insurance is then here we explore the topic.[br]

If building your dream home is in your future then so should builders liability insurance also be. If you are not well versed on what builders liability insurance is then here we explore the topic.[br]

Sometimes referred to as builders risk insurance, this form of insurance offers coverage for new property upon which a dwelling is being constructed. The coverage is purchased for the owner to protect him or her in the event that anything unforeseen should occur on the premises during the construction period. Some of the losses that this insurance will cover include damages caused by wind, rain, fire, lightning and vandalism. In most cases the coverage is bought by the owner, however the builder or contractor may purchase it if it is part of his contract. Some homeowners will make this a part of the contract that they sign with the person or company they hire to do the work.

Builders liability insurance covers many things but there are things that it does not cover. These include acts of war, any criminal and/or intentional damage done by the owner, flood or earthquake. For many people such things as earthquakes may not be a concern but a flood or damage you could incur yourself might be. In most instances this type of risk insurance applies to new homes being built as opposed to homes that are being renovated. Renovations or remodeling is most often covered under the homeowner’s existing insurance policy. 

The builders liability coverage goes into effect once the construction commences and it ends once it is finished. This type of policy cannot be stretched out to last any longer as it is not a permanent kind of policy. It cannot be emphasized enough, builders liability insurance does not cover any losses that have taken place before construction got underway or any losses that take place once the work is all finished. Another thing it does not cover is any of the equipment, tools or supplies of the builders.[br]

This form of insurance is so important because of the protection needed for the unfinished dwelling. It is also generally accepted as fact that most lending institutions will not approve financing for a new property until this coverage has been purchased.

In order to obtain this type of insurance policy you should first consult with an experienced and professional insurance agent who is use to dealing in these matters. In order to find you the best coverage possible, he or she must know a few key aspects about your project. The agent must know the financial estimate of costs for the project, detailed information about the project (including blueprints, schedule and prospective completion date, as well as information about the contractor) and information regarding safety features.