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Builders Risk Insurance Long Island

builders-risk-insurance-long-Island

Any builder knows that risk is part of the job. Without utilizing proper insurance coverage, in collaboration with proper education and solid work, doing construction on buildings would not be fiscally responsible for most contractors. While buildings are under construction, there are a number of risks that they are exposed to that are not always the same as completed buildings. Some of these risks may include: fire, damages from high winds, or even other, unexpected occurrences, sometimes referred to as "force majeure." When working on any construction project, a builder's risk insurance policy is a critical component to the planning process.

As mentioned previously, buildings under construction require insurance that is different than a completed building or structure. Often times, home or building insurance policies will specifically exclude structures that are under construction, leading to a cancellation of the coverage or a denial of the claim. This is why builder's risk insurance Long Island is so critical to the construction process, and why any construction company engaging in construction should consider it. Speaking to a licensed agent or broker, such as the agents at Maxx Coverage Insurance.

To get builder's risk insurance Long Island contractors need to first speak to an insurance agent or broker to determine what coverage is needed and for how long. Many builder's risk policies provide coverage for the length of the construction project, and most even have coverage that increases as the project progresses. Once the building is complete, the builder's risk policy would then be replaced by the permanent structure policy.

Although any questions should be directed to a licensed agent or broker, there are some things to keep in mind about builder's risk insurance. First off, the scope of the project will determine the amount of coverage needed, and the agent or broker can address specific questions about the policy limits. Additionally, the policy holder may be different depending on who actually owns the building or location under construction. Finally, builder's risk policies do not cover the contractor's liability or any liability arising from the construction, the policy covers the structure itself. There are some specific riders that may be added to your policy, as well as some complementary insurance policies that a licensed agent or broker can discuss based on the project specifics.