Builders Risk Insurance in Visalia CA & Paso Robles CA
Builders Risk Insurance
Protection for New Construction, Remodeling, and Renovation
Most people are familiar with the concept of insuring commercial or residential property, but many aren’t aware of the distinction between that and insuring property under construction. At Mitchell Insurance Services, we understand the difference and specialize in helping our clients protect their building projects.
What is Builders Risk Insurance?
Buildings and properties under development are exposed to a wide range of exposures that may not affect completed properties. For example, they’re more exposed to weather damage from wind, hail, or rain, as well as threats of theft and vandalism. Builders Risk Insurance provides financial security for a project against these types of risks and more through the course of construction.
The policies we write at Mitchell Insurance Services can include the following:
- Structural Coverage: Buildings and other structures associated with the project are typically the largest financial exposure
- General Liability: Construction means people working in an environment where they’re at increased risk for injury
- Equipment & Materials Coverage: In addition to what’s being built, the equipment and materials being used for construction are also at risk for damage or loss
There are many factors that go into crafting the right Builders Risk policy for a particular operation. Details such as time and duration of construction, the location of the build site, and the type of property can affect what type of coverage might be deemed necessary as well as your rate. Our agents will work with you to assess your individual needs and find a plan that meets those needs within your budget.
Who Needs Builders Risk Insurance?
Usually, Builders Risk Insurance is established in the name of those funding or managing construction, but may also be obtained by the landowner or others involved with the project. There is very often more than one party named on a Builders Risk policy, especially in cases of complex tasks involving architects, engineers, and other specialized professionals who may not otherwise be insured.
The Right Partner
When purchasing Builders Risk Insurance, it’s clear that you need to work with an experienced agent that understands how to protect construction properties and who will carefully consider the specifics of your project to ensure you get the right coverage. When you contact Mitchell Insurance Services, our agents will give you exactly that. So give us a call today and we’ll help secure your property from start to finish.
licy is mainly designed for new construction, rather than changes and improvements to existing buildings. That form of construction is usually covered by property insurance and does not need any additional coverage, although it's best to talk with an agent before starting any particularly large project just to be absolutely sure it's covered.
What Does Builder's Risk Insurance Cover? What Does It Not Cover?
Builder's Risk Insurance generally covers the owner, the lending institution, the contractor(s) performing the work, and other related parties. In addition to providing coverage for damage to the building itself, most plans also cover temporary constructs (like scaffolding), materials, and equipment being used (whether it's currently on-site or off-site). The majority of policies are written on an all-perils basis, which means that reimbursements are available for any losses except those specifically excluded.
Common exclusions from this coverage include (but are not limited to):
- The value of the land itself
- Employee theft
- Damages beyond the estimated value of the construction
- Any losses brought by law or ordinance changes
- Damage from earthquakes
- Losses from war, nuclear hazards, or actions by civil authority
As you can see, most of the exclusions are not likely to occur during the course of a normal construction project. The value of the land is the only one likely to change as new work is done, and you will likely need to account for any improvements or losses the next time your company prepares taxes.
Builder's Risk Insurance Policy Lengths
Most policies last until the building is no longer under construction. The exact point at which this occurs can vary—it may be when certain parts of the structure are done (but finishing work, like painting, has not been completed), up to the day it opens for business, or when the contract with the construction company ends. If you're worried about interim risks—like the building being damaged between when construction finishes and when it opens for business—talk to one of our agents and ask about extending your coverage.
1. "Threat/Vulnerability Assessments and Risk Analysis." WBDG. Accessed April 20, 2016. https://www.wbdg.org/resources/riskanalysis.php.
2. "Who Should Buy Builder’s Risk Insurance?" BuildingAdvisor. Accessed April 20, 2016. http://buildingadvisor.com/who-should-buy-builders-risk-insurance/.
3. "How Do I Account for Land improvements?" Questions & Answers - AccountingTools. Accessed April 20, 2016. http://www.accountingtools.com/questions-and-answers/how-do-i-account-for-land-improvements.html.