Builders’ Risk Insurance – It’s Not Just for Contractors

When professional builders take on projects, they make sure to cover all the bases. For example, should problems develop during the course of construction, it can ruin everything, and the losses can be devastating. That’s why they always take out builders’ risk or course of construction insurance. However, if you are building a new house, making some major upgrades, or remodeling, the same thing can happen to you, and you need to protect yourself from this kind of loss. Here is an example story to help explain the importance of personal builders’ risk insurance in Florida.

Sam and Emma wanted to build their dream home on their family’s lot. They had four kids and had finally outgrown their current home and had been planning this project for years. The couple was going to get all the building permits and do the work themselves with the help of Sam’s brothers, who worked in the building industry for years.

Sam didn’t think that insurance was necessary.  Emma wasn’t so sure so; she went to their independent insurance agent for advice.  The insurance agent talked to Emma and asked her what they planned to do if high winds destroyed their work when it was half-finished. What would happen if vandals came by and caused thousands of dollars worth of damages? He explained that they need a course of construction insurance policy to cover their risks.

After talking to their insurance agent, Emma insisted that they take out a personal builders’ risk insurance policy. Sam knew it was best to listen to his wife, so he contacted the agent and got the coverage he needed.

The project went very well. However, three months later, lightning struck the project when no one was home, and it caused a fire that burned the project to the framing work. It also destroyed the roof and did $50,000 worth of damages.

Even though this story ends in disaster, there is a bright side to it. Because Sam and Emma had the right kind of insurance, they didn’t have to suffer any financial losses. Two years later, the house is finished and they couldn’t be happier!


What is Personal Builders Risk Insurance?

Also called, “course of construction insurance,” personal builders risk is a policy that covers your building project until it’s completed. This way, you don’t have to take any unnecessary risks with your work.


Who Needs This Insurance? 

Are you thinking about building a new home in Florida and doing the work yourself? Maybe you plan to hire a private contractor or people you know for the job. Maybe you plan on a big remodeling project.  You need to protect your investment.


What Does This Insurance Cover?

A builders’ risk policy is usually written on one specific project. You can take out a policy to last for a month or so, or an entire year if you like. Your insurance can cover new construction, remodeling projects, or vacant properties. Here are some of the things it can protect you from:

  • Storm damage
  • Lightning
  • Fires
  • Vehicle damage
  • Vandalism
  • Materials or equipment stolen from the work site


Insurance Options

You may need to think about some optional coverage like:

  • Flood insurance
  • Earthquake coverage
  • Liability insurance – covers the premises liability in case someone gets hurt, etc. while on the property
  • Inland marine coverage – if you haul your own materials to the work site, standard auto insurance doesn’t usually cover damages while in transit. Cargo or inland marine insurance will reimburse you for damages.


Why Choose Dennis Insurance Agency?

Dennis Insurance Agency is an independent insurance agency that has a personal interest in all of our clients. When you use a trusted independent agency, you are assured of the most affordable rates and the best coverage options in the industry.

We don’t represent an insurance company. We represent you and your better interests. In fact, our account managers are not paid sales commissions, and we want you to have the lowest premiums and the right coverage options, whether it’s personal insurance, commercial insurance, or specialty coverage like personal builders’ risk insurance.

Why search all over Florida when you can come to Dennis Insurance Agency, and we do all the searching and checking for you? It’s our job to find you the best deals, and we are here to earn your business. Don’t take needless chances with your future. Click this link to fill out our online quote form or pick up the phone and call 800-238-7556 toll-free, today.