Builder’s Risk Insurance

When real property is under construction, it needs more insurance than a finished property that has occupants. Precision Insurance helps California builders in Montclair, Inland Empire, San Bernardino, and Riverside Counties and all other areas of California.

Builder’s risk insurance is often called “Course of Construction” insurance. Because construction projects have complicated relationships among a number of parties working on the project, several types of property and many ownership interests need insurance protection.

Usually, one company (the project owner or the general contractor) buys builder’s risk insurance, but coverage is for all the parties working on a project. Smart insurance buyers insist that all parties covered by insurance sign waivers of subrogation. These waivers prevent lawsuits for damages covered by the builder’s risk insurance.

What Does Builder’s Risk Insurance Cover?

Builder’s risk insurance coverage covers the building or structure that is under construction. Coverage also includes materials, supplies, fixtures, some equipment and machinery. Most buyers of builder’s risk insurance add endorsements that include, fences, scaffolding, temporary structures incidental to the project, false work, and office trailers. Large projects also add language to the definition of covered property that includes underground works such as piping, paving, sidewalks, and excavations.

In addition, course of construction insurance provides coverage for the project site, property in transit and property at other temporary sites.

What is Not Covered?

Builder’s risk insurance does not cover a few items that a standard policy excludes.

These are:

Automobiles

Money

Landscape

Contractor’s tools

Certain machinery and equipment (coverage available under a contractor’s equipment floater).

In California, all employers must have Worker’s Compensation Insurance for all their employees. Accordingly, employee job related injury or illness is not covered. Proof of this insurance is a requirement by the insured from every company working on the project.

Take Away

As builder’s risk insurance covers all stakeholders, it is intricate insurance coverage.

Damages covered by the insurance will be subrogated within the contract.

The policy definition of coverage is as inclusive and broad as possible

Adequate limits for on and off premise coverage is important to value properly

Precision Insurance is an independent insurance agency, so we work for you, not one insurance company. We have access to many highly rated insurance companies and put together the best insurance package for your construction project, based on your needs and our knowledge and experience. We listen to your needs and provide insurance that precisely fills them for your project. Call Precision Insurance today at 909-752-0239.