{"id":1085,"date":"2023-08-28T17:17:19","date_gmt":"2023-08-28T17:17:19","guid":{"rendered":"https:\/\/veloxinsurance.com\/?page_id=1085"},"modified":"2023-10-31T21:14:47","modified_gmt":"2023-10-31T21:14:47","slug":"builders-risk","status":"publish","type":"page","link":"https:\/\/veloxinsurance.com\/builders-risk\/","title":{"rendered":"Builder\u2019s Risk Insurance"},"content":{"rendered":"
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Until a newly constructed building is complete, it is in a far more vulnerable state than a completed home or commercial structure. And until a residential property is 100 percent complete, from the paint to the light fixtures, most jurisdictions will not issue a certificate of occupancy. This means that homes under construction will often be left to the mercy of the elements and the public\u2019s goodwill for up to 12 hours per day.<\/p>\n

On top of that, buildings that are not completed, especially wood-frame<\/span> structures, are far more vulnerable to both fire and vandalism than completed properties. All told, construction site risks are considerable. And this is reflected in the billions of dollars in losses each year that property owners and builders incur due to construction site damage. For small builders and individual homeowners, experiencing the total loss of a building that is under construction may leave them in dire financial condition. For many, even a small risk of a total loss on a property under construction must be completely eliminated or the project will not be financially viable.<\/p>\n

Builder\u2019s risk insurance provides a solution that allows homeowners and builders to go through with projects whose loss would represent a personal or business catastrophe. In the United States, it is mostly incumbent upon the property owners themselves to ensure that adequate builder\u2019s risk insurance has been taken out on any new construction. In many cases, a property owner that allows construction to begin without builder\u2019s risk insurance may find themselves owing for theretofore completed work and materials used should the property experience a loss.<\/p>\n <\/div>\r\n \n\n

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However, increasingly, many construction firms and developers are proactively getting their own builder\u2019s risk insurance. This gives them an additional selling point, offering blanket protection for the new building\u2019s owner should misfortune strike. From the perspective of a construction or development company, builder\u2019s risk insurance also guarantees that they will be paid in the event of an insured loss rather than attempting to collect from the owner of a nonexistent property who may elect bankruptcy rather than shelling out a six-figure<\/span> settlement.<\/p>\n

While being built, structures face a number of significant risks, many of which are likely to result in the total loss of the building\u2019s value if they occur. Builder\u2019s risk insurance protects builders and property owners from the majority of these risks. Perils that are often insured against with builder\u2019s risk policies include:<\/p>\n <\/div>\r\n \n\n

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