What is Builder's Risk Insurance?

Whenever a new home is being constructed, the homeowner is most likely going to be required to purchase builder's insurance. Here are the basics of builder's risk insurance and how it works.

Builder's Risk Insurance

Whenever a property is being built, there is a lot of risk that is associated with the property. Many different things could potentially happen to this property in order to cause damage to it. Because of this, the person that is having the house built for them will want to purchase this type of insurance in order to protect their investment. This way, if anything happens to the property, they will be able to be reimbursed for the costs that they have incurred up to that point.

Coverages

Builder's risk insurance can cover a number of different things that can happen to a property. For example, this type of insurance will cover you if the structure catches fire and burns to the ground. This insurance is also going to cover any damage that happens as a result of wind or a storm. This coverage will also pay for damage that is incurred from vandalism or accidental damage. In most cases, it is not going to cover damages from earthquakes or floods.

blog comments powered by Disqus