Builder’s Risk Insurance policy is used to
There are certain items you should
An all risk with exclusions form. The number of covered perils is superior under an all risk with exclusion policy
Be sure theft coverage is not excluded.
Do you want your tools covered?
There are certain issues that you need to be aware of:
First: Who purchases the builder’s risk?
But if you are dealing with a small general contractor or if you are purchasing the materials, you need to be a named insured. If there is a claim, you want your name on the claim check. The simplest way to be the named insured is to acquire the builder’s risk yourself.
Secondly: If your project is in a coastal area, it is common that the insurance company will exclude the windstorm and hail perils. The wind and hail coverage would then be provided separately, probably through the Texas Windstorm Insurance Association, TWIA. If you are dealing with the TWIA, you need an agent that is familiar with the constantly changing TWIA rules and underwriting. For instance, to save half of the premium, if you use the TWIA for new construction, the policy inception date needs to be before any construction work is performed.
Thirdly: The builder’s risk policy is designed to terminate upon the completion of the project. As a result, get the appropriate property replacement policy immediately upon completion.
We hope this helps you with your building project. If we can be of further service, contact us at your convenience.