Builders Risk Insurance in NH
What is Builders Risk Insurance?
In the construction field, challenges that cause delays, increase costs, and cause financial problems are common. Sometimes these are relatively minor and easily addressed, but other times their consequences are significant and lasting. Builder's Risk Insurance can help protect a construction project from financial doom.
Builders risk insurance is a specialized type of commercial insurance crafted to meet the construction companies and contractors' risk mitigation needs.
It can also be a type of personal insurance, similar to a homeowner's policy if a homeowner has legal ownership of the property and building materials during construction.
Because it’s such a specialized coverage, anyone constructing a home or building should work with a knowledgeable insurance agent who’s helped other construction companies, contractors, and property owners when looking to cover a building under construction.
What Hazards Does New Hampshire Builders Risk Typically Cover?
NH construction companies and contractors can benefit from the protections that builders risk coverage offers, as well as any person or company with a financial interest in a construction project for unexpected events like:
- Other Acts of God, such as hurricanes
Whether erecting a structure from the ground up or taking on an existing building's extensive remodeling, the building is often more vulnerable because it is not entirely secure and more exposed to weather than a completed and secure structure.
Can a Single-Family Homeowner Get Builders Risk Insurance?
Many NH home insurance companies offer builders risk coverage that protects construction projects of new single-family homes.
Coverage for the remodeling of existing homes is less common. Still, like those at HPM Insurance, a knowledgeable insurance agent can typically find builders risk coverage depending on the extent of the project.
How Much Does Builders Risk Insurance Cost?
Builder's risk insurance varies per coverage needs and limits, but the cost is typically associated with the project's overall cost. Are you looking to insure a single-family home in Manchester or a large condominium complex in the White Mountains?
Beyond construction costs, insurance companies may also factor in construction materials and safety protocols, such as access to water (for fire safety) and the premises' security.
Who is Responsible for the Builders Risk Insurance- the Builder or the Homeowner?
Like most things in insurance, it depends. As you can't insure something you don't technically own, the driving factor is who owns the property and when.
If the builder owns the property, constructs the home, and then on the day of closing, transfers the ownership to a homeowner, the builder would typically be responsible for the insurance during the time of construction.
If a homeowner owns the land and contracts a builder to design and build the home, the homeowner would typically carry the builder's risk insurance.
There can be gray areas, so be sure you consult with an insurance professional if you have a specific situation.
What Does Builders Risk Cover?
Precisely what a particular builders risk policy will protect is determined by that policy’s terms, conditions, and exclusions. Generally speaking; however, a builder's risk policy would typically cover:
- Building materials and supplies
- Equipment on-site, in transit, or at other location
Additional coverages may include
- Scaffolding and construction forms
- Temporary structures
- Pollution clean-up
- Debris removal in the event of a covered loss
- Lost sales or rental income
- Additional interest on a loan
- Real estate taxes
Talk with your insurance professional as builder's risk insurance can often be customized to meet your needs.
What Risks Does Builders Risk Typically Not Cover?
All insurance policies have exclusions, so be sure you understand the exclusions so you can either purchase coverage separately or do your best to protect the construction from a particular loss, including:
- Acts of war or terrorism
- Wear and tear
- Employee theft
- Damage due to faulty design or workmanship
How To Find a NH Builders Risk Insurance Policy?
For help finding builders risk insurance, contact the independent insurance agents at HPM Insurance. Our independent agents have assisted many construction companies, contractors, and homeowner's in New Hampshire with this protection, and we’re ready to help you!