If you own a home, you can purchase homeowners’ insurance. This is insurance that protects your structure after it has been built. What about buildings that you are in the process of building? If you have new construction, it could be vulnerable to fire, theft, wind, vandalism and negligence. Here are some reasons you may want to consider personal builders risk insurance.
Risks to Your Property
There are a lot of risks to your property. Your unoccupied property could become a target for thieves who may steal fixtures or pipes. An unfinished home may also be more vulnerable to the weather and other natural disasters. Builders risk insurance may cover damaged materials, defective workmanship, debris removal and more.
Lack of Coverage
Some property owners think that they do not need builders risk insurance because the contractor should already have insurance. While most do have insurance, this does not mean that it will cover your project. If you have a high-value home, for instance, you may need more insurance coverage. In some cases, you may want to purchase the insurance and list your contractors as insureds.
The amount of insurance that you need depends on your particular build. Higher-value homes and buildings require more insurance coverage. Accidents and criminal acts can happen at any time and you need to prepare for them.