Why Do I Need Builders Risk Insurance?
Constructing a building is a large and expensive undertaking. When you start this project, you want to make sure you have an insurance policy in place to cover you against unexpected occurrences.
Some lenders might also require coverage in order to release funding.
Who Needs Builders Risk Insurance
Builders risk insurance should be obtained by any person or company who has a financial interest in the project. Those stakeholders named on the policy can include the property owner, contractor, subcontractor, architects and engineers.
According to USAssure.com, other groups of people who are eligible to obtain a commercial or residential builders risk insurance policy include house flippers, development or investment companies, retail companies and school districts. The terms of the policy remain the same no matter who is listed on the policy as the insured, but the types of policies available to each person or group can vary by client type.
What Projects Require Risk Insurance
Builders risk insurance can be beneficial for numerous types of construction projects. Policies are usually available for new construction, remodeling projects and installations. These policies are typically categorized as residential or commercial. While residential might only cover a family home, some commercial policies can cover structures ranging from office buildings to retail centers to sports arenas, and more.