New construction is happening all around, not to mention renovations and remodels, especially in the last few years. If your contracting company specializes or has vested interests in new construction, renovations, or remodels, you need to make sure you have the right type of insurance protection. You may assume that your current New York commercial insurance policy provides adequate protection, but you need to be aware that there are certain limitations or exclusions that may apply. Purchasing a Builder’s Risk Policy may need to be considered to close any coverage gaps you may incur during construction and until the job is complete. Do you need Builder’s Risk protection?
Builder’s Risk Coverage Explained
Imagine being hired as the contractor for a new construction project for a commercial building. Your crew has worked diligently over the past year on this new structure, only to experience a fiery blaze one night due to lightning. Without the right type of insurance protection, you may faced with some serious financial challenges due to limitations on coverage or specific exclusions.
The answer is to purchase a Builder’s Risk policy that is designed to cover property exposures from the start of construction, renovation, or remodel and ending when the job is complete. This provides coverage on an all-risk basis in the amount of the estimated completed value of the structure after construction. It is designed to provide coverage for equipment used for the project, property on site (in-transit and off-site), along with building materials for damage(s) caused by a covered peril.
Builder’s Risk Insurance Provides Coverage for Damages Resulting from:
- Explosions or Fire
- Theft or Vandalism
- Vehicle or Aircraft Accidents
- Damaging Winds or Hail
Keep in mind there are some exclusions under a typical Builder’s Risk policy (intentional acts, earthquake, floods, and employee theft, to name a few) so it is recommended that you contact your local New York independent insurance agent if you are planning new construction, renovation, or remodel and need assistance. This enables them to find the right type of coverage for you at a price you can afford.
This type of insurance can also extend to “soft costs” which are expenses incurred when a covered peril results in damages that delay your project. Soft costs may include additional advertising costs because of the delay, taxes, overtime, and lost sales to get the project back up and running as quickly as possible.
Contact Us at Cameron Group Insurance Today
If you are planning a new construction job, renovation, or remodel, it is crucial you contact us to discuss whether Builder’s Risk insurance is right for you. We are here for all your N.Y. home and commercial insurance needs and our objective is to provide the right type of N.Y. insurance protection you need and deserve; at a price you can afford. Don’t wait! Call us today at 845-627-2130.