How to Get Builder's Risk Insurance Online
Check insurance company ratings., Utilize a secure site., Verify important structures., Choose a company with commercial experience., Determine the project location., Calculate the project's value., Know when agents are available., Inquire about...
Step-by-Step Guide
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Step 1: Check insurance company ratings.
Use a rating tool like Standard and Poor's to check an insurance company's rating before you buy builder's risk insurance online.
This rating reflects the company's customer service rating, financial stability and history.
Purchase a policy from a company with at least an "A" rating.
It's also a good idea to check the Better Business Bureau to see how the company is rated. -
Step 2: Utilize a secure site.
Only fill out builder's risk applications on sites that are run on a secure server.
Most online applications will require information about your company's financial history and project funding information.
Using a secure site safeguards against this data being accessed by third parties.
Secure sites are designated with "at the beginning of the site address. , Count how many fire departments are within 5 miles (8.0 km) of the construction site, and how many fire hydrants are within 1,000 feet (304.8 m) of it.
This information affects the calculated value of the policy and will be required in your application.
You must provide this information since an agent is not physically assessing the site. , Ensure that the insurance company you're using specializes in commercial construction insurance, not residential.
Online applications should be specific to each classification. , Provide the street address of the construction site on your application.
The area where construction will be completed and the size of the lot will affect your policy's value and rates. , Document the value of any existing structures to be renovated, costs for materials, tools and equipment to build new structures and any related construction costs.
All of these expenditures will determine the overall value of your project to ensure it covers the full cost. , Determine the availability of customer service and on-site agent assistance in the event of an emergency.
Know whether you will have a specific agent assigned to your policy and if the agent is available 24 hours per day. , Many builder's risk providers archive online applications and policies for free or a small fee.
This service allows you to access policy information easily if a claim needs to be filed. , Many builders unnecessarily overstate the values to insure which results in significantly higher premiums.
Most builders risk coverage forms do not require builders to insure those costs that are not subject to loss or that would not have to be incurred again as a result of a total loss.
Examples of these costs that may be deducted from the estimated completed values include real estate sales commissions, closing costs, water taps fees, sewer taps fees, blueprints, engineering studies and land clearing/grading.
In addition, the builder may also deduct profit as long as the builder does not expect to be reimbursed for lost profit upon filing a claim. -
Step 3: Verify important structures.
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Step 4: Choose a company with commercial experience.
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Step 5: Determine the project location.
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Step 6: Calculate the project's value.
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Step 7: Know when agents are available.
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Step 8: Inquire about policy archiving services.
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Step 9: Money saving tip when applying.
Detailed Guide
Use a rating tool like Standard and Poor's to check an insurance company's rating before you buy builder's risk insurance online.
This rating reflects the company's customer service rating, financial stability and history.
Purchase a policy from a company with at least an "A" rating.
It's also a good idea to check the Better Business Bureau to see how the company is rated.
Only fill out builder's risk applications on sites that are run on a secure server.
Most online applications will require information about your company's financial history and project funding information.
Using a secure site safeguards against this data being accessed by third parties.
Secure sites are designated with "at the beginning of the site address. , Count how many fire departments are within 5 miles (8.0 km) of the construction site, and how many fire hydrants are within 1,000 feet (304.8 m) of it.
This information affects the calculated value of the policy and will be required in your application.
You must provide this information since an agent is not physically assessing the site. , Ensure that the insurance company you're using specializes in commercial construction insurance, not residential.
Online applications should be specific to each classification. , Provide the street address of the construction site on your application.
The area where construction will be completed and the size of the lot will affect your policy's value and rates. , Document the value of any existing structures to be renovated, costs for materials, tools and equipment to build new structures and any related construction costs.
All of these expenditures will determine the overall value of your project to ensure it covers the full cost. , Determine the availability of customer service and on-site agent assistance in the event of an emergency.
Know whether you will have a specific agent assigned to your policy and if the agent is available 24 hours per day. , Many builder's risk providers archive online applications and policies for free or a small fee.
This service allows you to access policy information easily if a claim needs to be filed. , Many builders unnecessarily overstate the values to insure which results in significantly higher premiums.
Most builders risk coverage forms do not require builders to insure those costs that are not subject to loss or that would not have to be incurred again as a result of a total loss.
Examples of these costs that may be deducted from the estimated completed values include real estate sales commissions, closing costs, water taps fees, sewer taps fees, blueprints, engineering studies and land clearing/grading.
In addition, the builder may also deduct profit as long as the builder does not expect to be reimbursed for lost profit upon filing a claim.
About the Author
David Pierce
Specializes in breaking down complex creative arts topics into simple steps.
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