A Builder’s Risk Insurance policy is a type of property insurance that provides coverage for buildings and structures that are under construction or renovation. This policy is designed to protect the owner, contractor, or developer against damage or loss to the building or structure caused by various perils, such as fire, wind, theft, or vandalism.
A Builder’s Risk Insurance policy typically covers the following types of property:
- The building or structure being constructed or renovated
- Materials and supplies stored at the construction site
- Equipment and machinery used for the construction or renovation process
It’s important to note that a Builder’s Risk Insurance policy typically does not cover liability claims related to bodily injury or property damage that occurs on the construction site. For this reason, it’s important not to forget to purchase Premises Liability insurance as well.
Premises Liability insurance provides coverage for bodily injury or property damage that occurs on the construction site, such as slip-and-fall accidents or damage caused by falling debris. This type of insurance is essential for protecting the owner, contractor, or developer against lawsuits and other legal claims that may arise during the construction or renovation process.
In summary, a Builder’s Risk Insurance policy is a crucial component of protecting your building or structure during the construction or renovation process. However, it’s important not to forget to purchase Premises Liability insurance as well, as this coverage provides protection against liability claims related to bodily injury or property damage that occurs on the construction site. By working with an experienced insurance agent, you can ensure that you have the right coverage in place to protect your construction project and your business.
Homeowners insurance policies generally provide coverage for your home and personal belongings, as well as liability coverage for injuries or damage to property that may occur on your property. However, coverage for a home under construction may vary depending on the specifics of your policy and the insurance company.
In general, it is important to notify your insurance company if you are planning to build a new home or make significant renovations to your existing home. This is because the risks associated with a home under construction are often different than those associated with a completed home, and your insurance company may need to adjust your coverage accordingly.
If you fail to notify your insurance company of construction or renovation work being done on your home, it could result in a denial of coverage or reduced coverage in the event of a loss. This could leave you responsible for the cost of any damages or injuries that occur on your property during the construction process.
In conclusion, it is generally not advisable to assume that your homeowners insurance policy will cover a home under construction without notifying your insurance company. By working with your insurance agent to ensure that you have the appropriate coverage in place, you can protect yourself and your property during the construction or renovation process.
