Builders Risk Insurance

Builders Risk Insurance Minnesota

What is builders’ risk insurance, and what does it cover? Builders’ risk insurance, also commonly referred to as a course of construction insurance policy, speaks for itself. A builder’s risk policy helps protect buildings against damage and loss, and it is applicable to both commercial and residential buildings during the construction or renovation phase. It is key to a successful risk management program, but can often be misunderstood.

Coverage can vary depending on your insurance company, but generally includes fire, windstorms, lightning, explosions, vandalism, theft, and more, depending on the options you choose. This policy can cover more than just the building; it can also cover building materials, supplies, temporary structures, and other items located at the building site.

What if the property loss causes additional soft costs or expenses? It can cover expenses unrelated to the construction project, such as rental income, lost sales, extra interest on loans, and real estate taxes.

Most builders are good at building, not paperwork or insurance; that’s where we come in. Our team of insurance professionals specializes in builders’ risk insurance, and we can guide you through the complexities of selecting the proper coverages.

May we please discuss your builders’ insurance with you? We are a local, independent insurance agency in Minnesota that specializes in contractor insurance. Please click Get My Quote or call 952-222-8073.

Builders Risk Policy

Some of the keywords builders find us under are builders’ risk insurance, Minnesota, Zurich builders’ risk insurance, and Progressive builders’ risk insurance.

Some other big-name builders’ risk insurance companies we work with are Auto-Owners, Selective, State Auto, Acuity, Integrity Mutual, Cincinnati Insurance Company, Hartford, Nationwide, and Travelers.

We can help you with your commercial builders’ insurance or residential insurance. Big or small, we insure them all! Commercial builders and residential home builders love our services.

Any person or company with a financial interest in the construction project is insured on a builders’ risk insurance policy. This can include the general contractor, the property owner, subcontractors, lenders, or even the architects.

Some of the exclusions on a policy are flood, earthquake, wind, or beach zones. If the project had risks like this, we would discuss with the carrier the option of removing the exclusion or adding an extension. Other exclusions include wear and tear, acts of terrorism or war, rust and corrosion, employee theft, damage due to faulty design, mechanical breakdown, poor workmanship, materials, and engineering.

Since this is temporary insurance, knowing when it begins and ends is crucial. The insurance policy tells us what triggers the coverage’s start and the conditions that end it when it expires, is canceled, becomes occupied, or the building is put to its intended use.

Please be reminded that our insurance agency can also assist you with your general liability, commercial auto, and workers’ compensation needs.

How Much Does Builders’ Risk Insurance Cost in Minnesota, and How Is It Calculated?

Each builder’s risk insurance policy is unique, and the costs can vary depending on what you need, from project to project. The more coverage and extensions you need to protect the construction project, the higher the builder risk insurance cost.

Construction materials, the type of project, location, and details such as coverage, limits, and deductibles can all impact the price. We will also need to know your hard costs.

Contact Us for a Quote

You must work with an experienced agent to obtain the right builders’ risk policy for your construction project. Each project presents unique risks, and having a skilled professional on your side makes a significant difference. Please tell us about your next construction project; we are listening.

Let us quote multiple insurance companies and find the best builders’ risk insurance policy for your hard-earned money.

Please complete our online form or call us at 952-222-8073. Our agents are standing by to help you get a customized insurance policy with low payments.

Frequently Asked Questions (FAQ)

Q- What is the difference between builders’ risk and property insurance?

Ans: Builder’s risk insurance covers buildings and structures during their construction. It is a temporary policy that covers the duration of the construction project. In contrast, property insurance covers completed buildings and their contents, which is a form of permanent insurance.

Q- Who typically pays for builders’ risk?

Answer: The general contractor or the owner/developer typically pays for the policy. Builders’ risk is essential coverage for building projects, as it helps pay for losses incurred by all parties who have invested in the project.

Q- What is the average cost of builders’ risk insurance?

Answer:- The average cost for builders’ risk is roughly 1-5% of the monthly construction budget. For example, if your budget is $500,000 and you purchase a 3-month policy, you can expect to pay between $1,500 and $2,500. Hard costs are a crucial factor in calculating the cost.