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A builders’ risk coverage form is a kind of insurance that protects buildings, both residential and commercial, while they are being built, renovated, or repaired. Vacant risk insurance provides coverage for an empty building damaged or destroyed.
More diverse commercial projects include office buildings, wind turbines, and multi-million-dollar sports venues. To know more about the coverages, reach out to McCormick Insurance Inc., serving at Pembroke Pines, FL.
The Insurance Plans on the Market
There usually are three types of builders’ risk policies: ground-up new construction, renovation (including or excluding the existing building), and installation. Building risk insurance coverage may widely vary from one provider to another. Some examples are location-specific and single-project policies, reporting forms, blanket policies, and blanket installation policies.
Unlike the more sophisticated reporting forms and blanket rules, the site-specific policy is simple enough for customers to use for several projects. Some policies will cover damage to temporary buildings and landscaping and damage to construction materials and fences.
What Isn’t Covered by Builder’s Risk?
Builder’s Risk insurance does not cover issues that arise from workers on the job site. Also not catered are damages inflicted by terrorists or a foreign government.
If you’re building a new home or renovating an existing one, you should budget 1-5 percent of the entire cost of your project budget for BR. The BR cost is mainly determined by factors including the building’s total insurable value (TIV) and the specific risks your customer desires to be protected against.
The insurance price is affected by the construction materials utilized, with wood and other flammable elements costing more than concrete. Extra policy extensions for BR coverage may also exist in areas prone to natural calamities like earthquakes or flooding. Do you live in Pembroke Pines, FL, and do you need professional help? Call McCormick Insurance Inc.