Why Get Builder’s Risk Insurance?
Builder’s risk insurance provides important coverage during the course of construction for any renovation or construction project.
Builder’s Risk Insurance Claims Examples
Property Loss
Incident: You are hired to construct a building for a client. Overnight, a severe weather storm destroys the framing and materials valuing $50,000.
Result: The builder’s risk policy reimburses the cost of repair and replace the damages materials.
Theft
Incident: During a construction project $100,000 of materials is stolen from the project site overnight.
Result: The builder’s risk policy reimburses the cost of the materials so that the project can resume without delay.
Product Liability
Incident: Your contracting company has been hired to do a major building renovation. A fire breaks out during the job and causes damage to the existing structure as well as most of the work already done and materials totaling $300,000 in damages.
Result: Your builder’s risk policy helps to absorb the cost of the additional damages and reimburses the cost to repair the damages as well as the materials lost.
Builder’s Risk Insurance, Explained
What is builder’s risk insurance?
Builder’s risk insurance covers the gap left in the property insurance when standard property insurance excludes coverage while under construction or renovation.
What does builder’s risk insurance cover?
- Building – the cost of repair to the existing building as a result of an insured loss
- Materials – Replacement cost for damages, destroyed or stolen building materials
- Debris Removal – Additional cost to remove debris as a result of a loss
- Soft Costs – Related legal fees or architectural costs
Who needs builder’s risk insurance?
- Any project that involves major renovations or building construction
- Contractors, homeowners undergoing major renovations, commercial building owners, etc.
What is not covered by builder’s risk insurance?
- Faulty design or professional negligence
- Intentional criminal acts
- Equipment or contractor’s tools
- Third party liability
- Damage to automobiles and/or auto liability
Full List of Industry Insurance Types
Why Choose Pacific Insurance?
Our staff are trained Registered Insurance Brokers of Ontario (RIBO) which is the self-regulatory body for insurance brokers in Ontario.
We have been regularly featured in the media as insurance experts and asked to speak at events like the ‘CRV Radio International’.
1 on 1 Service
Speak directly with an expert instead of dealing with a faceless call centre.
40+ Years in Business
We provide the results of a large agency while giving you the agility and service level of a boutique agency
Fluent in Many Languages
Speak to our brokers in English, Cantonese, Mandarin, French, Korean, or Hebrew.
