Builder’s Risk Insurance

Many homeowners these days are choosing to remodel their homes rather than build a new one. Very often a remodel can make a world of difference.

However, precautions must be taken before starting any construction project. Working with a knowledgeable insurance agency like Craft Guard Insurance Services is a must to make sure your property is properly insured during construction.

Builder’s Risk Insurance is a special type of property insurance, which indemnifies against damage to buildings while they are under construction. Builder’s Risk Insurance is coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause. Usually, lenders will require builder’s risk insurance before issuing construction financing. They will generally require this coverage before funding remodeling projects as well.

A common example when this type of coverage is needed is when a business breaks ground on a vacant lot. In this scenario, a company owner might not yet have a definitive insurance policy that includes the new property.

The coverage is typically designed for the period that a location is undergoing physical changes, and will generally end once the remodeling is finished.

Craft Guard Insurance Services listens to the specific needs of an organization and will work to find a comprehensive solution, ensuring that all of the bases are covered.