Builders Risk Insurance in New York

Whether a commercial builder or property owner, you’ll need builders risk insurance coverage. So, what are builders risk insurance? Builders risk insurance offers liability and property coverage for the buildings or structures you work on while under construction. Since there is always a risk of loss or damage while a site is under construction, having this coverage will safeguard you.

Unlike artisan contractors insurance, which covers a more specialized area of liability, commercial builders risk insurance provides more general liability cover since commercial contractors typically head up the entire project and subcontracts work to artisans.

Builders Risk Insurance in New York provides coverage for the owner of the property, the lending institution or bank, the commercial contractor or contractors working on the site, and other related parties. 

Builders risk insurance companies advise having these policies in place to cover any damage to the structure. Further, they cover temporary structures like scaffolding, equipment, and materials used, be they on or off-site. In addition, most insurance firms write these plans on an all-perils basis. In other words, reimbursements cover any losses, save for those expressly excluded.

However, there are a few exclusions from builders risk insurance in New York, and these include but are not limited to:

• Employee theft
• Damages from earthquakes
• Losses brought about as a consequence of actions by civil authority, war, or nuclear hazards.
• Losses as a result of law or ordinance changes
• The land value
• Damages that fall beyond the estimated value of the construction

While this may seem daunting, the likelihood of any of the above occuring during construction is minimal.

Builders risk insurance in New York typically covers new, ground-up construction, installation, and remodeling. 

Further, accepted commercial projects or structures protected by builders risk insurance include condominium or apartment structures over 4-units, strip malls, stores, and office buildings. 

Additionally, stadiums, warehouses, municipal properties, and institutional establishments are eligible for this kind of cover.

Builders risk insurance has a definite beginning and end date or effective and expiration date as they’re also known. 

Generally, a builders risk insurance policy begins on the day all contracts are signed. However, some policy provisions may limit when the coverage takes effect for your project. So, make sure you are aware of what specifically kicks your policy into action.

Because builders risk insurance is a temporary policy, it will have an expiration date. In most cases, the policy will last until the construction of the building is complete. However, several other instances see the termination of this kind of policy:

• The purchaser accepts the project 
• The structure is abandoned with no further plans to complete it 
• The property stands completed for over 30 days 
• The property is put to its intended use 

The state of New York requires general contractors that have employees to provide workers’ compensation insurance. However, why builders risk insurance in  New York isn’t mandatory in the law places absolute liability on the contractor, making it wise to have a policy in place.

Further, the clients you work with may also stipulate that to take on the project, you must have builders risk insurance in place.

Although construction teams are careful, things on a building site can go awry. For example, loss or damage may occur due to vandalism, a fire, severe weather, or an installation gone wrong. 

Since the law places full liability on the contractor, should an incident occur, you would need to cover all the costs involved. As a result, builders risk insurance protects you from having to pay these costs out of your own pocket.

Although construction teams are careful, things on a building site can go awry. For example, loss or damage may occur due to vandalism, a fire, severe weather, or an installation gone wrong. 

Since the law places full liability on the contractor, should an incident occur, you would need to cover all the costs involved. As a result, builders risk insurance protects you from having to pay these costs out of your own pocket.

Builders risk insurance is an excellent investment for anyone who is financially involved in the construction of a building. As a result, the following parties should consider taking out these policies:

• Building owners and investors
• Contactors
• Sub-contractors and artisan contractors
• Architects
• Engineers

NCI understands the risks and liabilities that come with installations, renovations, and the construction of new buildings, which is why we have a team of highly qualified insurers who will help you find the best policy to protect you and your project.

If you want to find out more about the builders risk insurance cost, contact our insurance company for a builders risk insurance quote. Our team looks forward to helping you!