Builders Risk Insurance in Maine
Allen/Freeman/McDonnell Agency
Builders Risk Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
Builders risk insurance provides specialized protection for contractors working on large projects. Policies might protect against project delays, project incompletion, and worksite theft.
- Multifamily housing
- Retail stores and malls
- Office buildings and complexes
- Specialized equipment and heavy equipment
- Specialized and common tools
- Construction materials and supplies
What is builders risk insurance?
Working in construction comes with many challenges, not the least of which is completing projects on time. Minor delays might be managed through scheduling and working with a customer. Major delays that cost the customer, however, could result in the contractor being financially liable. Builders risk insurance may help protect Maine contractors from this type of risk.
Builders risk insurance provides specialized protection for contractors working on large projects. Policies might protect against project delays, project incompletion, and worksite theft.
When do construction companies in Maine need builders risk coverage?
Builders risk coverage is often recommended when undertaking a major construction project. Construction companies in Maine frequently get policies for commercial projects. For example, a contractor might purchase coverage when building:
- Multifamily housing
- Retail stores and malls
- Office buildings and complexes
- Industrial facilities and warehouses
- Schools, hospitals, and municipal buildings
- Roads, bridges, and other public infrastructure
In certain situations, coverage might also be procured for an extensive renovation or addition.
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Can builders risk coverage insure the construction of a single-family house?
Builders risk coverage isn’t typically purchased for the construction of one single-family house. A subdevelopment of at least several houses would likely call for coverage, but one house is smaller than what most policies are intended to insure.
If builders risk is truly desired for the construction of a house, such as a large mansion, an insurance agent who knows builders risk well can check what might be available.
What does builders risk coverage insure at a construction site?
Builders risk policies might cover a variety of items when they’re at a construction site. Depending on policy terms and conditions, the following might be covered when on-site:
- Specialized equipment and heavy equipment
- Specialized and common tools
- Construction materials and supplies
- Structures in progress or completed
What protection (if any) is offered for structures can especially vary. Policies might cover no structures, structures while they’re being built, structures after they’re built, or all structures that a project includes (in progress and completed). An insurance agent who specializes in builders risk can help construction companies decide which types of structures they want covered by a policy.
What risks does builders risk insure against?
Builders risk can cover a variety of risks that could delay progress, cause damage, or result in loss of equipment. Depending on terms, fire, smoke, theft, vandalism, high winds, severe weather, and other perils could be covered.
Can a builders risk policy be extended if there’s a project delay?
Some builders risk policies may allow for an extension if a project gets delayed. Not all policies have this option, however, and most policies with the option only permit one extension.
If an extension is needed and a policy can’t be extended, then another policy will likely have to be purchased. A knowledgeable and independent insurance agent can help search for coverage in this situation. They’ll be able to evaluate policies’ terms, and someone who’s independent will be able to look at policy options from different insurers.
How much do construction companies pay for builders risk?
The cost of builders risk varies, as insurance companies look at many factors when setting rates. Some of the details that may impact cost are:
- Project size and scope
- Project duration
- Project cost
- Contractor experience
- Equipment used
- Projected risks
There are still many other variables that frequently influence cost. An independent agent can look at quotes from different insurers to get a price for a particular project.
Where can construction companies in Maine find builders risk insurance?
If you need builders risk insurance for a construction project, contact the independent insurance agents at Allen Freeman McDonnell Agency. Our Maine agents will work closely with you to find a policy that has the protections your project needs, and that’s available at an affordable rate.
