Builder’s Risk and the Boom in Home Renovations
The past couple of years has produced a boom in home renovations never seen before in our lifetime, and it does not seem to be over. Staying at home has propelled people to hire out construction crews to renovate their homes, and build foundations to their properties. That means that the construction industry has profited and that is good if you are in the business. Likewise, every construction worker needs to understand a builder’s risk when working on a property or a new home.
Builder’s Risk
Builders Risk Insurance protects the property and construction substances during a renovation or construction project. Additionally, it helps offset liabilities for any damages that could come from fire, vandalism, or general incidents involving vehicles. Building owners, architects, contractors, and subcontractors need builders’ risk insurance to undergo a project.
Before you start that construction project, it is best to secure the best construction insurance plan to ensure that you have protection. Also, you want to make sure that this insurance plan covers the risks and provides no issue with liability.
The Boom
The pandemic changed the way people cared for their homes. This boom in home renovations has altered people’s priorities. With more people at home, they started tending to their homes and what they could do to fix them. The National Association of Homebuilders reported that the rates of remodeling homes went up by 13 percent from 2020 to 2021. This increase came from people spending more time at home and noticing the issues within the foundation.
Risks of Renovating
Of course, there were some risks to any renovation. If you are on a home project, you have to look out for water damage that could arise from renovations. In addition, you might find cracks in the foundation. Make sure the materials you use are safe for the entire crew, and always check for outdated plumbing or electrical work that might arise. Also, make sure you discover the history of the house if possible. You will want to know if there had been a project before; that way, you could snuff out faulty work from an old renovation project.
The Outlook
The construction industry is flourishing thanks to the pandemic. Before starting your project, ensure that you have the right insurance plan to cover yourself and your team. Thus, it will protect you from any issues that could pop up.
About Baldon Group
Baldon Group Founder and CEO Tom Donohue has more than 20 years of commercial insurance experience specializing in difficult insurance placements and high-risk accounts. The industry niches we specialize include construction, real estate, hospitality, and high-valued homes in coastal communities.