Building: It’s a Risky Business

Building a new home or even remodeling a current one is an exciting and momentous time. However, there are also risks involved. Though these risks don’t occur often, they can still happen. If they do, our knowledgeable staff can help!For instance, imagine that you are having a new home built for your family.  Three months into the project there is a fire, and everything is destroyed. Will the contractor’s insurance cover the loss? It will if he has a builder’s risk policy in place. Know this before they break ground.If you are having renovations done, a builder’s risk policy is even available for purchase if your current homeowners insurance in Atlanta policy will not cover risks of the renovations.What all does a builder’s risk policy cover? Well, it can cover perils such as fire, wind, hail, theft/vandalism, lightning, explosion and even flood and quake if offered by the carrier. If you are in a flood or quake zone, be sure to ask for the coverage.The limit of coverage depends on the completed value of the structure, including all materials and labor costs. The time period of the coverage depends on the length of the project.Coverage ends either when the job is completed in full, occupancy is established or the policy expires. Be sure to know which comes first. Most carriers will extend the policy if construction is delayed or takes longer, but it is always best to give an accurate or slightly extended estimated completion date up-front in case you are unable to get an extension at a later date.While this policy does cover a broad variety of losses, it does not extend coverage to property of others, such as tools and equipment, or liability and any accidents on the job site. Additionally, any sub-contractors working on site are required to have their own insurance.Don’t make building risky! Be sure to read all of the exclusions and extensions of the policy before you sign on the dotted line. If you have any questions, call Risk & Insurance Consultants at 404-459-5975.