Builders risk insurance is a form of legal and financial protection during a building construction when damage could occur. Homeowners don’t need this type of protection, but an investor who pays for a construction project does. An individual, company or organization who invests in a building’s renovation or construction is covered. There are different reasons why builders risk insurance is necessary.
Reasons for Coverage
Builders risk insurance Florida services are needed to prevent the financial ruin of investors. An investor could be a contractor, builder or property owner who takes on the risks of constructing or renovating complex buildings. They are covered for thousands of dollars of damages that are caused unintentionally.
Types of Coverage
The types of damages covered include theft, fire, vandalism and vehicle collision. Natural disasters like floods and earthquakes are not covered, and neither are workplace injuries and accidents. The coverage limit is the estimated total cost of the project. The location, the amount of deductible, length of project and types of construction materials affect the final cost. When the project is completed, the coverage ends and then the building owner obtains commercial property insurance.
Types of Risk Insurance
All risks coverage includes the building under construction and any property stored off site. This open policy may include coverage for floods and earthquakes along with rent losses and business interruptions. There is additional coverage for the costs of supplies and equipment that are being installed on site.
Builders risk insurance as offered by Hallandale Florida Insurance Groups is designed to cover the costs of different perils that cannot be prevented. Plenty of builders risk insurance Florida providers are available, and finding the right one is a challenge. Riemer Insurance Group helps guide you through the process of finding a risk insurance policy. Complete a quote form online and see how much you are covered.