As a property owner, you are responsible for any damage to your property during construction. Builder’s risk insurance protects you from financial losses in the event that your property is damaged or destroyed during construction.

There are many reasons to purchase builder’s risk insurance, even if you are not required to do so by your lender. What are they?

Protect Long-Term Projects Exposed to External Factors

Builder’s risk insurance can protect you from a variety of external factors that can damage or destroy your property during construction. These factors can include severe weather, fire, vandalism, and theft.

If your property is damaged or destroyed during construction, builder’s risk insurance can help you cover the cost of repairs or replacement. This type of insurance can also help you recoup any losses you incur if you are unable to complete your project due to damage.

Insure Materials and Supplies at the Construction Site

When you are constructing a building, it is important to ensure that all materials and supplies are safe and available for use. This includes both the materials used in the construction itself and the materials that the construction workers will use.

Builder’s risk insurance can help you protect yourself from any losses that may occur as a result of any accidents or errors that may occur while building. This type of insurance can also help you recoup any costs you may incur as a result of any problems with the construction site.

Insure Costs Associated with Project Delays

If your construction project is delayed, you may incur additional costs as a result. For example, you may have to pay for additional labor or equipment rental. You may also have to pay for the costs of materials that have already been delivered to the construction site.

Builder’s risk insurance can help you cover some of these costs. This type of insurance can also help you pay for any additional costs that may be associated with a delay in the project.

Debris Removal

If your construction project involves the removal of debris from the construction site, you may be responsible for the cost of removing that debris. Builder’s risk insurance can help you pay for the cost of removing debris from the construction site.

Who Can Use a Builder’s Risk Insurance?

A builder’s risk insurance can be used by anyone involved in a construction project. This includes builders, contractors, and other professionals involved in the construction process.

How Much Does Builder’s Risk Insurance Cost?

The cost of builder’s risk insurance will vary depending on the size and scope of the construction project. The insurance company will consider the value of the property being built, the type of construction being done, and the location of the construction site.

The Bottomline

Builder’s risk insurance is a critical insurance policy for builders and property owners. It covers damage to the property from perils such as fire, wind, and vandalism. Without this insurance, property owners would be responsible for the full cost of repairs, which could be tens or even hundreds of thousands of dollars.

Pascal Burke Insurance Brokerage, Inc. offers builder’s risk insurance in Louisiana. We know the construction business from the ground up. Get in touch with us.