Weather, Theft, and Delays: How Builder’s Risk Insurance Helps Protect Your Construction Project

with Matt Weeder

Construction projects come with plenty of moving parts, and plenty of opportunities for the unexpected. Severe weather can damage work that’s already been completed. Materials can disappear from a job site overnight. An unexpected loss can bring progress to a halt and create additional expenses.

While you can’t prevent every setback, the right insurance coverage can help protect your investment. Builder’s risk insurance is designed to help protect construction projects from certain types of property damage and loss while work is underway.

Here are three common construction risks and how builder’s risk insurance may help.

1. Weather-Related Damage

Mother Nature doesn’t care about your construction schedule.

Windstorms, hail, fire, lightning, and other covered events can cause significant damage to a project, sometimes in a matter of minutes. Depending on the policy and circumstances, builder’s risk insurance may help cover the cost to repair or replace damaged property.

Without appropriate coverage, those costs could fall on the property owner, contractor, or another party involved in the project. Having builder’s risk coverage in place can provide an important financial safeguard when severe weather threatens your progress.

2. Theft and Vandalism

Construction sites can be attractive targets for theft and vandalism. Building materials, fixtures, tools, and other property may be left on-site as a project progresses, creating opportunities for costly losses.

A break-in or act of vandalism doesn’t just mean replacing what was stolen or damaged. It can also disrupt schedules and create additional expenses while crews wait for replacement materials.

Builder’s risk insurance may provide coverage for theft and certain types of property damage, depending on the terms of the policy. That protection can help reduce the financial impact of an unexpected incident and keep the project moving.

3. Project Delays and Additional Expenses

The initial damage is sometimes only the beginning of the expense.

A covered loss can create additional costs as a construction team works to clean up the site, replace damaged materials, and resume work. Depending on the policy, builder’s risk coverage may include expenses such as debris removal, scaffolding re-erection, and costs associated with certain ordinance or law requirements.

Because policies and available coverages vary, it’s important to understand exactly what your builder’s risk policy includes before construction begins.

Protect Your Project Before the Unexpected Happens

Bad weather, theft, vandalism, and construction delays can happen even on carefully managed projects. The financial impact, however, can often be reduced with the right protection in place.

Whether you’re building a commercial property, constructing a new home, or completing a major renovation, builder’s risk insurance can be an important part of protecting the investment you’re making in the project.

Not sure whether you have the right builder’s risk coverage? We’d be glad to take a look. Send us an email or give us a call to talk through your project and coverage options.