Take a Better Look at the Components of Builder’s Risk Insurance
Some contractors are under the impression that one builder’s risk insurance policy is the same as any other. In reality, while builder’s risk products offered by different carriers may have some similarities, there are many important factors that differentiate them. Assuming that builder’s risk insurance policies are the same wherever you go can be a costly mistake to make when a loss occurs.
Builder’s risk insurance policies may be broad coverage or “specified peril” policies. Although “specified peril” policies tend to be cheaper, consider the impact of a loss that isn’t specified in the policy. An example of this would be a policy specifying that it covers damage from lightning strikes to the covered property. If lightning strikes a nearby building causing a fire that damages the construction project, this type of specified risk policy wouldn’t cover the losses because the lightning didn’t strike the construction project itself.
Generally, policies will cover damage caused by theft, vandalism, aircraft damage, fire, hail damage, explosions, and more. However, every policy has its limits, and exclusions may vary from carrier to carrier. Common exclusions include damage caused by intentional acts, governmental actions, floods, and earthquakes.
Taking some time to review your policy terms can help you to understand where your project could face uncovered risks. At Artisan Insurance Solutions, we can help you get started on the right builder’s risk insurance policy that you need and deserve. Give us a call on (909) 275-7557 today to get started.