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Builder’s Risk Insurance in Sugar Land, TX

The construction industry is consistently one of the most dangerous and accident-prone sectors among U.S. employers. Construction worksites often include inherent perils and hazards that create constant risks and exposures. Furthermore, your construction firms are regularly beholden to stringent deadlines and contractual obligations that may threaten significant losses. A single accident or error committed by even the most careful companies could have irreparable financial ramifications. With that in mind, construction businesses must understand the value of builder’s risk insurance.

How Does Builder’s Risk Insurance Work?

Builder’s risk insurance is integral to most construction firms’ insurance portfolios. This coverage, also known as course of construction insurance, can generally be considered a specialized form of commercial property insurance for property currently under construction. Policies may include coverage for new structures built from scratch and existing buildings undergoing renovations. In many cases, construction firms and contractors may be required to carry builder’s risk insurance to be eligible for projects.

What Does Builder’s Risk Insurance Cover?

The details of a builder’s risk insurance policy may vary, but in most cases, this coverage can help pay for losses caused by perils such as the following:

  • Fire
  • Windstorm
  • Hail
  • Lightning
  • Explosions
  • Theft
  • Vandalism

Construction firms and other stakeholders often house valuable property integral to a project’s operations on job sites. Builder’s risk coverage can generally pay for damages involving the following:

  • Buildings under construction
  • Temporary structures
  • Equipment and tools
  • Materials and supplies
  • Important documents (e.g., specifications, blueprints)
  • Coverage for losses of “soft” costs (e.g., lost income) due to a covered construction delay may also be available.

How Much Builder’s Risk Insurance Is Needed?

The amount of builder’s risk coverage needed may vary significantly among projects. Although general contractors or property owners are usually responsible for acquiring and maintaining this type of insurance, other stakeholders with a financial interest in the project should also be listed as an insured party in the policy. This may include the following:

  • Property owners
  • General contractors
  • Subcontractors
  • Lenders
  • Engineers
  • Architects

When determining specific coverage needs for a builder’s risk policy, stakeholders should consider various risk factors, including construction site details, storage plans, materials used and transportation requirements.

Get the Right Coverage

At Texas General Insurance, our agents have three decades of experience helping individuals, families and businesses assess and address their coverage needs. Our dedicated staff will work with you to ensure your finances and future are protected by optimal insurance policies. Contact us today to get started.

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