If you are considering a commercial/home renovation or new construction, you may not realize what type of insurance protection you may need. You may wonder if it will be covered under your Alabama homeowners insurance. Or perhaps you may think it is financially smarter to take a chance of experiencing a loss instead of taking out additional risk protection called a Builder’s Risk insurance policy. Is a Builder’s Risk policy necessary?
You may not think a loss will happen but keep in mind that losses can and do happen and you need to be prepared. Imagine you are midway through a new construction project on a commercial building and come to the site the next day and find that all your building materials have been stolen along with some expensive fixtures and appliances you had delivered the week before. You never imagined (or at least didn’t expect) this sort of loss to happen, but now what? Without Builder’s Risk insurance protection, you can expect to incur many of the expenses to replace the stolen items out of your own pocket.
*While your Alabama commercial property insurance does include coverage for this type of loss, there are often specific limitations and exclusions that may apply.
Builder’s Risk Policy and the Protection it Affords
If you are planning new construction or renovation, you need to consider this coverage, but what is a Builder’s Risk policy? This type of protection is designed to protect the project from beginning to end from losses that can happen. Early in the process, you may have little to protect, but as the job progresses, you have more to lose. This insurance protection is established at the “finished project” value but realize it does not reach the full value until the construction is completed.
Consider the costs of lumbar, high-end appliances, HVAC, and other building materials and what you would do without adequate insurance protection. You may be surprised at how little the fees associated with a Builder’s Risk policy are, so it is recommended you contact your local Alabama independent insurance agent for a quote today!
Typical Property Covered Under a Builder’s Risk Protection Policy Property, but Not Limited to:
Below are some items typically covered, subject to sub-limits:
- Building Materials/Supplies
- Scaffolding, Temporary Fencing, and Other Construction Objects
- Property in Transit (on or off-site)
- Soft Costs- These costs arise from delay(s) in the job completion due to a loss and include expenses such as legal fees, advertising expenses, financing, and architect expenses.
- Foundations and Excavations
Don’t Wait…Contact Burkett & Associates TODAY!
The protection you need and deserve for new construction or renovations is a phone call away. Burkett & Associates is an Alabama independent insurance agency that wants to work with you and for you to meet all your Alabama commercial/residential insurance needs. Can you afford NOT to have this type of insurance protection? Call us today at 256-704-7400.