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Builder’s Risk Insurance Isn’t Just For New Construction: 5 Things to Keep In Mind for Renovations

Construction projects can be risky. If you’re a property owner, you’ll want to make sure that you’ve got all your bases covered before the first shovel hits the ground. But it isn’t always possible to think of every little problem that might pop up, so it’s important to keep your builder’s risk insurance policy options in mind for any construction renovation projects you have.

If you’re planning to increase your home’s square footage or change its layout, you should plan on getting builder’s risk insurance coverage. Even if the renovation requires only a few repairs, make sure you understand the builder’s risk coverage first. This invaluable protection can help keep your construction renovation project moving forward.

Why Should You Consider This Type of Policy?

If you are starting construction renovation, plan your builder’s risk insurance coverage and keep these 4 things in mind.

1. Your policy covers more than construction.

These policies aren’t just for homebuilders anymore. Even if you are only undertaking a small renovation project, a builder’s risk insurance policy can help protect you from costs associated with weather conditions, theft and vandalism, faulty materials, and faulty workmanship.

2. Not all builders are required to carry builder’s risk coverage.

Check with your state’s requirements first before you begin the builder’s risk insurance process. Many states, for example, require builders to carry builders’ risk insurance policy if they are holding a state-licensed general contractor’s license.

However, builders are only required to have builder’s risk coverage if they are working on your home as their primary trade. If you hire a general contractor who is not in the construction business as their primary trade, builder’s risk insurance may not be required by law, which means your project wouldn’t be covered.

3. Off-site construction projects are also covered.

If you are planning to construct a garage or shed on your property, for example, you will need builder’s risk insurance protection. This is true even if the structure will not be attached to your home.

Your coverage can also cover off-site storage of materials during the construction project, so you won’t need to worry about any inventory being stolen.

4. Your policy does not have to be limited to contractors you hire for the job.

You do not necessarily need to hire a contractor in order to buy a builder’s risk insurance policy, and you can even allow multiple contractors on the job if your builder’s risk coverage is up to date.

The policy will help provide protection for all of the contractors working on your property, whether they are contracted through another company or not.

Final Thoughts

Remember builder’s risk insurance is a valuable resource for renovations, not just home construction. Keep these 5 things in mind throughout the builder’s risk process to make sure your policy will provide you with the protection you need before starting any project.

If you’re considering a renovation, contact Bethany Insurance Group for more information on builder’s risk insurance. Our agents can help you find the coverage you need to protect your property during this exciting process.