Builders Risk Insurance is a type of property insurance that covers projects under construction, during the course of construction. Builders Risk can give coverage on an all risk basis covering the entire property and might also include theft, vandalism, and acts of god. Builders Risk Insurance can protect both the owner and contractor, and can be purchased by either one. Builders Risk commonly covers the building under construction and all materials on site. Contractor’s equipment and tools are typically not covered. An optional coverage can be added to cover soft costs which consist of: financial cost, interest, marketing, legal, accounting, delayed opening loss of income. Flood and earthquake damage can also be added. In order to receive a quote for Builders Risk a contractor will typically need to provide project cost, project description, copy of contract, type of construction, number of stories, locations, number of phases. Builders Risk insurance can typically cost between 0.24-0.64% of the total project cost.

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