A Course of Construction Insurance policy, or Builder’s Risk policy, is available through Allied Insurance for current homeowner clients. The Builder’s Risk insurance provides coverage for buildings while under construction. This coverage is in place to cover the value of the property until it is either moved into or ready for occupancy. It also helps cover contractor’s materials at the job site as well as liability for the grounds of the construction site.
This coverage covers basic perils such as fire, wind, lightening, hail, theft and vandalism. There can also be limited coverage for structural collapse during the construction of the building. It does not, however, generally cover things such as earth movement, employee theft, and water damage, weather damage to property in the open, war, government action, contract penalty, voluntary parting and mechanical breakdown, aircraft or watercraft damage and automobile damage to the construction.
The named insured of a Builder’s Risk policy is usually the Contractor or Developer of the property. However, it could be the building owner or homeowner as well if they are responsible for insuring the property while under construction. You are also able to add a mortgagee or lien holder on the policy as well.
If you’re looking to build a home, contact your Allied Insurance agent about a Builder’s Risk policy and make sure that you are being protected during the construction of your home. Once the home is complete, you can transition into a standard Home Owners insurance policy.
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