If you own a building, you buy commercial property insurance to cover possible loss or damage to your investment. Most commercial insurance policies have provisions that cover incidental construction or improvements to the building. If your business is involved in new construction or a remodel of your current building, you will want to consider a builder’s risk policy.
Why You Need Builder’s Risk Insurance
1. Property insurance policies are renewed annually; they are not structured to provide consistent or guaranteed coverage levels for multi-year construction projects.
2. A stand alone builder’s risk policy can provide contractors, and/or the building owner, with important protections that are not typically contained in the property insurance policy.
3. A builder’s risk policy also provides property insurance coverage for the entire duration of a project.
Who Should Consider Builder’s Risk Insurance?
There are a number of parties involved in a new construction project. Each party has an interest in the project, and might consider builder’s risk insurance. The contractor, project manager, and building owners all have interests that need to be protected.
A builder’s risk policy can be tailored to provide soft costs, including additional advertising expenses, interim interest expenses on a construction loan, project refinancing costs and legal fees. Through project-specific and appropriate coverage, stand alone builder’s risk policies can protect the financial interests of both the project owner and the contractor
When you think of Worthington Insurance you think of choices. As an agency that represents various insurance companies writing business in PA and New Jersey, we can match you with an insurance company that is the best fit for your insurance need