Builders Risk Insurance Overview 

Construction projects can be affected by events such as fire, theft or severe weather, which can increase costs. Real Auto Insurance Agency Inc. offers builders risk insurance to help cover these and other kinds of losses.

What Is Builders Risk Insurance?

Builders risk insurance is property coverage for buildings and structures during construction or renovation. Coverage may apply to materials, fixtures and equipment on-site, in transit or temporarily stored off-site.

Why Is It Important?

Without builders risk insurance, a single incident can lead to major costs or project delays. This policy can help:

• Cover common causes of loss, such as fire, theft, vandalism and certain weather events
• Cover materials and equipment before the project is complete
• Meet lender or contract insurance requirements during construction

Who Should Get This Policy?

This coverage can be useful for many parties with a financial stake in a construction project, such as:

• General contractors and subcontractors
• Property owners and developers
• Real estate investors and house flippers
• Business owners planning renovations or expansions

What Are the Policy Exclusions I Need to Know?

Builders risk insurance policies often do not include the following:

• Employee injuries, which are usually handled by workers’ compensation coverage
• Losses from faulty design, workmanship or materials
• Tools, equipment and machinery owned by contractors, which may need separate coverage
• Normal wear and tear or gradual deterioration

How Real Auto Insurance Agency Inc. Supports Your Project

Real Auto Insurance Agency Inc. works with construction professionals in Chicago, IL to review project details and recommend policies that match their budgets and priorities. Contact us today to learn more and get a free personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.