Builders' Risk Insurance

builderThe specific purpose of builders risk insurance is to make sure construction workers and builders are insured and protected from any potential damages or loss of work during the building process. Such accidents include weather related damage (lightning, hurricane, hail, windstorm), fire, theft and vandalism. It’s common for builders risk policies to include an "all perils" foundation that means all the perils are included in the policy except for the perils that are specifically written out of the policy. Some of the more noteworthy exclusions are floods, human error, bad materials, war, terrorism and earthquakes. Some of these perils can be written back into the policy for an additional premium, like earthquake and flood.

This policy does not cover everything. Liability, for instance, is not covered on the building process. That can be covered by commercial general liability insurance and can be purchased by the contractor and the owner – this will cover liabilities for site damage and public injuries. A common and preferred policy to get in addition to builders risk insurance is workers compensation insurance, to cover the workers on the project.

Builders risk policies do not cover contractor tools, equipment and the construction trailer. Building materials can be included in some policies. A majority of builders risk insurance policies are used for a property to be constructed from the ground up, but the policies can also cover for renovations and extensions to existing properties and buildings.

Building project time completion varies. It’s not uncommon for some insurance carriers to write for just a set amount of time, like a year, and then you have the ability to renew the policy in one-year increments. There are other companies that can be even more specific and write six month terms that can be extended by the month – delays in construction are common so they work to meet your timeline but it’s a good idea to have an idea of your expected completed date when purchasing a policy. Builders risk insurance expires once the project is completed and certified and then it’s time to write a permanent insurance policy for the building.

If you’re a builder that constructs a number of properties per year, it’s possible to get a reporting form policy. That means you can pay your premium on a monthly basis. If not, the full premium has to be paid before construction begins.

ECI Agency Inc. is an independent agency in the Oklahoma City area and are not limited to just one insurance carrier. Without that restriction, we’re able to not only find a great price but the coverage that fits your needs as well. We’re not just Oklahoma City – our agency can write insurance policies anywhere in the state as well as beyond Oklahoma’s boarders. Our typical clients are served in the Great Oklahoma City Area and beyond such as Piedmont, Yukon, Edmond, Bethany, Okarche, Kingfisher, Cashion, Mustang, Crescent and Deer Creek.
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Please note that we cannot bind insurance via email, fax, or phone. Any quotes given are subject to underwriting guidelines by the respective insurance carriers. Any reference of coverage used are not intended to express legal opinion as to the nature of coverage, but rather just a brief generalization of coverages. Please read your policy for specific details of coverages.

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ECI Agency, Inc. | 325 Piedmont Rd N | P.O. BOX 600 | Piedmont, OK 73078 | Phone: (405) 373-2977 M-F 8am-5pm