Builders' Risk Insurance in Oklahoma
Serving Weatherford, Hydro, Clinton, Hinton, and surrounding areas.
What is Builders’ Risk Insurance?
Builders’ Risk Insurance covers repairs on structures while they are under construction and there is a loss due to weather or another covered loss. This type of insurance policy is only in force while the structure is under construction and before the building is being used for its intended purpose. One example of this is a new home that is being built. A Builders’ Risk policy would be in place from the time construction begins until the residents start to move in and take occupancy of the home once completed.
Builders’ Risk Insurance covers the following risks:
· Weather – including wind, lighting, and hail.
There are also some additional circumstances that the policy would help with financial expenses for including:
· Damage to supplies while in transit to location.
· Damage to supplies at a temporary storage facility.
o “supplies” includes anything that will become part of the permanent structure such as bricks, lumber, shingles, etc.
Builders’ Risk Insurance does NOT cover the following risks:
· Floods or Earthquakes
· Damage to tools or equipment
· Damage to the structure from faulty design
· Employee Injuries
Who needs to purchase Builders’ Risk Insurance?
This will be negotiated in the contract with the construction company, but it will either be the responsibility of the General Contractor or the property owner. The main thing here is that whoever purchases the policy must have an insurable interest in the property and structure being built. For more information, be sure to ask us and we will gladly answer any questions you may have!
Things to consider with Builders’ Risk Insurance:
Make sure the property where the structure is going to be located is also covered under a policy with liability. Builders’ Risk policies are PROPERTY ONLY and do not provide any sort of liability protection. This means that if someone were to get hurt on the property and hold you responsible, without liability coverage you would be responsible for all of the expenses out of pocket. A good example of how a property can be covered with liability is if a new home is being built and the owners already have an existing homeowners’ policy for their current home, the liability coverage extends to the new property as well.
Builders' Risk can also be used in the event of renovating an existing structure. Ask us for more information about this and to see if this coverage would be a good fit for your project.
Are you ready for a quote or have questions? Give us a call at 580-772-7101 or click here to fill out an online quote request form to get started on a quote today! Thank you for your interest in Magill Insurance and Real Estate! We look forward to being able to serve you!