Builder’s Risk Insurance

Builder’s Risk Insurance is specifically tailored to protecting buildings during the construction process. Builders Risk policies don’t cover a structure after construction is finished, only that which is being remodeled or under new construction. Due to the number of exposures throughout the construction process, Builder’s Risk Insurance is imperative…it also serves as the bedrock for a solid risk management program going forward.

What is Builder’s Risk Insurance?

Builders Risk Insurance is a vital insurance need for any construction project taking place. It essentially offers broad coverage for the perils and exposures during the construction process. Some Examples are Partially completed buildings, materials stored at the jobsite, material stored away from the jobsite, materials while being transported to the jobsite, soft costs related to starting the project over after a loss, debris removal following a loss, etc.

Who Needs Builder’s Risk Insurance?

If you have a financial interest in the building being constructed, you need Builder’s Risk Insurance. Builders Risk Policy “named insureds” can include:

General Contractors
Subcontractors
Property Owners
Developers
Lenders
Architects

How much Builder’s Risk Insurance does your Business Need?

There is a wide range of coverage limits available to Builder’s Risk Insurance. The estimated project costs for material and labor contribute towards the coverage limit you’ll need. Builder's risk insurance policies can often be written in terms of three months, six months, or 12 months or longer if needed. If the project is not completed by the end of the initial policy term, it can often be extended, but usually only one time.

How Much Does Oklahoma Builder’s Risk Insurance Cost?

Though Builder’s Risk Insurance is completely dependent on the nature of the project at hand(the type of coverage and the policy’s exclusions), the policy is typically 1%-4% of the overall construction cost.