Builder’s Risk Insurance, also referred to as “Course of Construction,” is a type of property insurance that is designed to cover a building that is being constructed.
Builder’s risk coverage includes a wide range of available policy options to choose from. While many of these policies are limited to site-specific coverage, it is important for construction companies to note that many standard builder’s risk insurance policies don’t include coverage for goods and equipment that are in transit, or in storage off site.
In order to obtain coverage for off-site materials, in is necessary to obtain an inland marine type of builder’s risk policy. Inland marine is an important part of builder’s insurance, since this insurance provides coverage for goods or materials that are in transit, or in a temporary location. This insurance can cover the structure itself, as well as the materials that are on site or in an off-site storage location waiting to be transported.
This coverage is often purchased by the builder or contractor, but it can also be purchased by the property owner.
Here are some things that an inland marine builder’s risk policy can cover:
Commonly purchased builder’s risk policies do not generally cover theft of tools, and many construction companies don’t realize that inland marine insurance is necessary in order to obtain coverage that includes stolen equipment and materials. Builders risk inland marine insurance offers coverage for theft of materials or tools that are on the job site, or in transit, or in a storage location.
Property in Transit or in Storage
Another reason for inland marine insurance is that it provides protection for materials and valuable equipment that are in transit or in an off-site storage location. This valuable protection isn’t available under many standard builder’s risk policies, but it is included under inland marine.
Builder’s risk insurance is designed to provide protection against destruction caused to the structure or property due to a number of perils or events. Perils that are covered under most policies include fire, wind, theft, hail, vandalism, and lightning.
Generally, a builder’s risk insurance policy contains important exclusions that will not be covered. Often these policies are not designed to cover damages caused by perils such as earthquakes or floods. Each policy is different, and it’s important to make sure you have adequate coverage for your construction project. Talk with your insurance agent to find out which policy coverage options are available, and to make sure you have enough coverage.
If you have questions regarding builder’s risk insurance, or inland marine insurance talk with Texas Energy Insurance today. Our team of qualified professionals would be happy to assist you with any questions you have, and can help you to create the perfect policy that is designed around your individual needs. (877) 952-1010