How to Get Commercial Builder's Risk Insurance

Step-by-Step Guide

1. 1

   Step 1: Determine if one policy will suffice.

   Some builder's risk insurance policies require that you apply separately for each project that will completed on the construction site, while others offer blanket coverage for everything done on the site.
   
   Consult your builder's insurance agent to determine if one policy will cover all your needs.
2. 2

   Step 2: Calculate project costs.

   The total cost of your project will include the costs of building materials, equipment purchases or rentals and all other expenses related to the construction project except for the value of the land.
   
   This will determine the value of your builder's risk policy. , Determine the date the builder is scheduled to begin work on the construction project and the estimated date of completion.
   
   This is the length of time your policy needs to cover. , Most insurance companies will require principal builders on the construction project to have a minimum of 2 years of commercial building experience.
   
   Include documentation of the work record of the building company completing your project with your policy application. , Basic builder's risk policies cover property damage while under construction.
   
   Extended policies cover specific areas of potential damage like flood, fire and vandalism.
   
   Consider an extended-coverage policy if you're building in a high-risk area. , Some workers, like landscapers or electricians, are excluded from builder's risk insurance policies.
   
   Determine if you will need to apply for separate coverage or provide special documentation for coverage of these workers. , List all of the projects to be completed during construction on your insurance application.
   
   Include any work on foundations or underground structural components, plumbing, electrical systems and ventilation installation or repair.
   
   Some policies exclude elements like fences, bridges and building foundations from coverage.
   
   Determine if an additional policy is needed to insure these areas of your property. , Builder's risk insurance companies offer basic policies for small businesses and construction projects under a certain value and larger policies for bigger corporations and building projects that exceed a certain value.
   
   Know the value limitations on your policy to determine how your project is classified. ,, Determine where the boundaries of your builder's risk policy are regarding lost or stolen materials or tools.
3. 3

   Step 3: Confirm project dates.

4. 4

   Step 4: Document the builder's work experience.

5. 5

   Step 5: Consider extra coverage.

6. 6

   Step 6: Understand exclusions.

7. 7

   Step 7: List all structural components.

8. 8

   Step 8: Know the size of your project.

9. 9

   Step 9: Learn whether materials outside the site are covered.

10. 10

    Step 10: Some policies offer coverage against theft of tools or materials outside the job site

11. 11

    Step 11: but others only cover tools that are on site or materials that are already installed.

Detailed Guide

About the Author