It takes a lot of time and effort to plan the build of your dream home. On your to-do list, don’t forget to include builders’ risk insurance. Builders risk insurance protects you while you’re in the process of building your new home.
What Is Builders Risk Coverage?
Builders risk insurance protects the property while it is still in the process of being built. The coverages generally protect against the following:
- Natural disasters
Generally, the builder’s insurance policies will last for about six months and up to a year. If you have any construction delays, however, you can always renew your coverage. This type of coverage protects tools, equipment, and materials.
Who Requires Builders Risk Coverage?
Homeowners aren’t the only ones who might be interested in the builders’ risk. Anyone who has any kind of financial interest in the project should consider builders risk. For instance, the following parties may require coverage:
- General contractors
- Property owners
A discussion with an insurer could help you decide whether you need coverage for your building and also which policies will suit your needs.
Whenever you’re involved in a construction project, you need to think about protection. The best way to protect your assets is to insure them.