Homeowners often believe their existing home insurance policy covers all exposures. Yet, remodeling builders risk insurance can offer coverage that is more comprehensive and protect them from gaps they may not have known existed. Here are just five benefits to insuring your homeowner clients with a builders risk insurance policy when undergoing renovations:
- Broad Eligibility
Residential remodeling insurance, like that available through the Builders Risk Plan, offers coverage for a variety of projects and structure types. Whether clients want to perform a basic remodel (e.g. replacing kitchen tile), a minor structural change (e.g. replacing windows or doors), or even a major structural change (e.g. replacing or removing a load-bearing wall), they can get “A” rated protection for their project. Eligible residential structures include modular construction, custom homes, tract homes and more. Perhaps most crucially, those who opt to rely on their homeowners policies typically do not get coverage for the existing structure. Many property policies have exclusions for damage to the existing structure if renovations were in progress at the time of loss, leaving those clients to bear the financial impact.
- Comprehensive Coverage
Unlike some permanent property policies, clients renovating their homes with a home remodeling insurance policy have the option to include or exclude the existing structure. They also have access to coverage for the theft of building materials, property in transit, damage to installed flora (e.g. trees, shrubs, lawn and plants) and newly paved surfaces, property in storage, property owned by contractors, the expense of removing debris after a covered loss, and more.
- Flexible Limits and Terms
Though limits and terms often vary by provider, clients have access to comprehensive policies for projects valued up to $75 million with the Builders Risk Plan. In addition to coverages automatically included in our basic policy, We also provides clients the option to protect their specific project needs with additional sub-limit increases. To ensure flexibility for the unpredictable nature of renovation, We offer policy terms of six, nine or 12 months, with the option to renew.
- Additional Coverages
In addition to the broad scope of coverages available through builders risk, clients have access to coverage for floods, earthquakes and more. Clients also have the option to purchase coverage for other losses.
We know contract change orders are likely during construction and clients should call to endorse the policy with the increase. If forgotten and a covered cause of loss occurred, only those materials covered by the policy are protected. That leaves you with costly losses. With a contract change order endorsement, those new materials can be insured if a covered cause of loss occurs and the increased project value was not reported in time. Additional coverages include: soft costs and sustainable, “green” building materials.
- Mitigate Claims Impact
Builders risk policies have no cause to worry that premiums or future coverage will change in the event of a claim. Whether its a windstorm, fire or even theft during a remodeling project.
This is intended as a general description of certain types of insurance and services available to qualified customers. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.