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What is builders risk insurance?
Construction seems to always be prone to delays, with contractors trying to manage many challenges that can cause issues. Minor delays can often be managed. For major delays, though, contractors in Vermont might want builders risk insurance.
Builders risk insurance policies offer specialized protections for those in the construction industry. Policies typically protect against project delays and cancelations caused by a covered event.
What construction companies in Vermont is builders risk coverage for?
Builders risk coverage is generally recommended for Vermont contractors involved in large-scale construction projects. Policies are often purchased for commercial and government-contracted projects. In fact, many such projects may require that the hired contractor procure a builders risk policy.
What at a construction site is covered by builders risk?
In addition to protecting these projects against delays, policies may also offer coverage for a contractor’s equipment and tools when they’re at a worksite. Some examples of what a policy might protect include:
- Specialized equipment, large equipment, and small equipment
- Specialized tools and common tools
- Building materials and construction supplies
- Structures when they’re in progress and/or finished
The protections offered for structures at a worksite are highly policy-dependent. Policies might cover no structures, only those being worked on, only those that are completed, or all structures being built. An insurance agent who knows these policies well will be able to check exactly what structures a given policy covers.
What perils are covered by builders risk?
The perils that a builders risk policy covers also depend on the policy’s terms. In most cases, policies cover perils such as smoke, fire, vandalism, theft, and certain weather events. Some policies may also cover certain causes of water damage, or offer other specific protections.
Again, a knowledgeable insurance agent can check what a particular policy would cover.
What sorts of projects are builders risk policies available for?
Builders risk policies are primarily used to insure larger projects. Many of these are commercial projects, such as retail buildings, office buildings, industrial facilities, or special-use buildings. They also can be government projects, whether buildings or other infrastructure, or residential developments.
Is builders risk coverage available for single-family home construction?
Builders risk coverage is often purchased when building residential developments, or for larger multi-family housing.
It’s typically not purchased for building just one single-family house, however. The cost of any major delay in the construction of just one house usually doesn’t justify the premiums.
In select cases, coverage might be acquired for an especially large single-family house. An experienced insurance agent can check whether a policy is available if coverage is really desired.
Can a builders risk policy be extended if there’s a delay in construction?
Many builders risk policies offer the possibility of one extension if there’s a delay in work. Few policies allow for multiple extensions, and some might not have any extension option. This is a detail that should be checked when purchasing coverage.
How much are the premiums for builders risk policies?
The cost of purchasing builders risk coverage depends on many factors. The construction project, expected timeline, and contractor’s track record are just a few of the details insurance companies often look at.
An easy way to check the premiums for a specific policy is by working with an independent insurance agent. An independent agent has the freedom to get customized quotes from several insurance companies.
Where can contractors working on projects in Vermont find builders risk insurance?
If you need builders risk insurance for a construction project that’s in Vermont, get in touch with the independent insurance agents at Palmer Insurance. We’ll make sure you find a policy that covers your construction project well.
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Residents of Vermont can contact our representatives for assistance with their insurance needs. If you have questions or would like a quote, please contact us!
