If you’re building a property, you need to protect your investment from the moment construction begins, to the time the build is complete. If your building itself or the associated materials and equipment used during the build are damaged, a builder’s risk policy pays out to cover the cost of damage or replacement. It can also provide protection from financial liability if a person is injured during the build or the construction leads to damage of another’s property. To learn more about builder’s risk insurance policy, contact Coastal Insurance Group, Inc. We insure clients in Key Biscayne, Pinecrest, Doral, and nearby Florida, and offer complimentary consultations.
Builders risk insurance is a type of property insurance specifically designed only to cover buildings during new construction and, sometimes, during renovations. It provides coverage against certain unexpected events, such as fire, burglary or vandalism, and certain weather-related events like wind damage. It’s important to note that like many types of property insurance, builder’s risk policies do not protect your building against earthquakes and flooding. If you’re in an area at risk of flooding, you’ll need to ask about separate coverage. In addition to these events that cause damage to the building and equipment used to build it, builders risk insurance protects you if someone is injured on the construction site or if the construction causes damage to other property, such as nearby buildings or cars.
Builder’s Insurance Policyholders
In many parts of the country, builder’s insurance is required by city or state regulations before a new property begins construction. Contractors and custom builders can take out builder’s insurance policies, instead of the property owner, in some cases. From a property owner’s perspective, however, it is much safer for the owner to take out the policy. This is because if something happens during the build and the contractor is the policyholder, he or she could theoretically abandon the project after an incident and still receive insurance funds, although this is extremely unlikely.
Once the building has been completed, whoever owns the building will be responsible for securing permanent property insurance. Some of our clients sell their property, which means the responsibility transfers to the new buyer. For clients who maintain ownership of their property, we assist them in finding the right level of property insurance, sometimes as part of a larger business owner’s policy (BOP), depending on the nature of the commercial property.
Protecting Your Investment
If you’re interested in learning more about a builder’s insurance policy to protect your construction investment in Key Biscayne, Pinecrest, or Doral, FL, contact Coastal Insurance Group, Inc. We offer complimentary consultations and can give you a free quote for a policy for your project with the most competitive premiums available.