Looking for Builders Risk Insurance in Long Beach?
Builder’s Risk Insurance, which some refer to as Course of Construction Insurance, is a form of commercial property insurance which covers a building where the building or insured area is presently being constructed or heavily remodeled.
It can cover just the structure, or also the materials on site waiting to be installed or transported to the job site.
The builder’s risk insurance policy will pay for damages up to the coverage limit in the policy. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, but not including land value).
The construction budget is the best source for determining the appropriate limit of insurance.
Builder’s Risk insurance policies can often be purchased in terms of three-months, six-months, or 12-months. If the project is not completed by the end of the initial policy term, it can often be extended, but usually only one time.
How much does a Builder’s Risk Insurance cost?
The builders risk policy will provide coverage for damage done to the insured structure from a wide variety of events.
Damage from the following events will be covered by most policies:
- Fire
- Wind (may be limited in coastal areas)
- Theft
- Lightning
- Hail
- Explosion
- Vandalism
- Vehicles/Aircraft
You should read your course of builder’s risk insurance policy to be familiar with its limitations and exclusions. Limited coverage is provided for collapse.
Standard exclusions include:
- Earthquake
- Employee theft
- Water damage
- Weather damage to property in the open
- War
- Government action
- Contract penalty
- Voluntary parting
- Mechanical breakdown
An important exclusion which should be read in its entirety excludes coverage for damage resulting from faulty: design, planning, workmanship and materials. Earthquake and flood coverage may be purchased in some areas.
In addition to selecting the right coverage limit, it is important to confirm who is listed as a named insured on the policy. Owners, general contractors, and lenders may all require documentation during the course of construction. Clear communication at the start of a project helps avoid delays if proof of builders risk insurance coverage is requested before funds are released or work continues.
Builders risk insurance in California should reflect local building codes, permitting timelines, and regional exposures. Coastal wind considerations, wildfire concerns, and urban construction environments can also influence terms. Whether the project involves a commercial structure or a residential structure, reviewing insurance before breaking ground will ensure the policy aligns with the full scope and duration of the build.
How to get started on your Builders Risk quote
Need builders risk insurance in California? You can either call our office, or start your quotes below, and submit some basic information. Either way, we’ll make the process as simple as possible!