Builders Risk Insurance
Builders risk insurance is a specialized insurance coverage designed to protect buildings and structures under development, renovation, or construction. It also covers the equipment used in these projects.
At Baldon Insurance Group, we offer builders risk insurance solutions to ensure your construction projects are protected from various risks and unforeseen events.
Understanding Builders Risk Insurance
What Is Builders Risk Insurance?
Builders risk insurance is a policy specifically crafted to protect construction projects. It covers buildings and structures under development, renovation, or construction, along with the equipment and materials used in the projects. This insurance is essential for safeguarding against financial losses due to various risks during the construction phase.
Key Coverages Under Builders Risk Insurance
A comprehensive builders risk insurance policy from Baldon Insurance Group includes a wide range of coverages:
Property Coverage
- Foundations: Protection for the foundational elements of the construction project.
- Underground Pipes and Wiring: Coverage for essential underground infrastructure.
- Machinery and Fixtures: Protection for machinery and fixtures integral to the construction.
- Temporary Structures: Coverage for temporary structures like scaffolding, fencing, and construction signs.
Debris Removal and Defective Workmanship
- Debris Removal: Coverage for the costs associated with cleaning up debris after an accident.
- Defective Workmanship: Protection against costs resulting from defective workmanship during the construction process.
Additional Coverages and Benefits
Builders risk insurance from Baldon Insurance Group also offers additional benefits to ensure comprehensive protection:
Profits and Labor Expenses
- Profits: Coverage for the pro rata percentage of profit earned as of the date of the loss.
- Labor Expenses: Protection for labor costs and expenses incurred during the construction process.
Modular Components and Testing
- Modular Components: Coverage for modular units and components stored off-site or in transit.
- Testing: Coverage for losses caused by testing newly installed equipment.
Property of Others and Valuable Papers
- Property of Others: Protection for property owned by others while on the construction site.
- Valuable Papers and Electronic Data: Coverage for the restoration and replacement of important documents and electronic data.
Costs Covered by Builders Risk Insurance
Builders risk insurance covers a wide range of costs associated with construction projects can include:
Property Replacement
Coverage for the replacement cost of the property owned, ensuring that the valuation clause provides adequate funding to cover new materials after a loss.
Debris Removal
Coverage for debris removal, with provisions for expenses exceeding this amount.
Pollutant Cleanup and Removal
Coverage for legally imposed expenses to remove pollutants from land or water following a covered loss.
Optional Escalation Clause
Protection against unanticipated increases in labor and material costs.
Ordinance or Law
Coverage for losses incurred due to changes in building codes or requirements during the construction project.
Contract Penalties and Expediting Expense
- Contract Penalties: Coverage for written contract penalties.
- Expediting Expense: Coverage for additional costs incurred to meet project deadlines, including expedited shipping, additional staffing, and rental expenses.
Architects and Engineering Expenses
Optional coverage for costs incurred to engage architects and engineers following a covered loss.
Fungus, Wet Rot, Dry Rot, Bacteria, and Virus
Coverage for property destroyed or damaged by fungus, wet rot, dry rot, bacteria, or virus.
