Builders risk insurance is a type of policy that covers your materials, property, and equipment while you’re in the process of completing a construction job. It continues for the duration of the project and protects against fire, hail, theft, and more. There are some things to consider when choosing your policy.
Assess Your Risk
When deciding how much coverage you need, consider your risk. Are you building in an area with a high rate of theft? Is the area susceptible to severe weather? Do dry conditions have you worried a fire could spark? Think about how much you have invested in equipment and materials to help you determine just how much coverage you truly need.
Know Exactly What Is Covered
Ask your agent exactly what your risk policy covers. For example, most policies cover hail but won’t protect you if there is an earthquake or a flood, which means you need additional policies if you worry about either of those situations. By asking exactly what your policy covers, you ensure no unpleasant surprises if you need to make a claim.
Above everything, when choosing your policy, remember that you get what you pay for. While you should look for a competitive rate, anything that sounds too good to be true probably is. It’s better to be safe than sorry when it comes to protecting your investments.
