Residential Builders Risk Insurance In New York

Residential builders risk insurance is a type of personal property insurance you can purchase to cover you during periods of building or construction. For example, if you’re having a new home built or if you’re having major construction work at your residential property. It can cover you in case any accidents or other incidents occur during the construction process.

It’s important to note that a regular homeowners insurance plan won’t cover you if your home is still under construction, so you’ll need to take out a builders risk policy in order to ensure that you can get financial assistance if something happens, like acts of vandalism at the construction site or a bad storm that damages the structure.

It’s important to understand the difference between builders risk insurance and homeowners insurance. A lot of people get confused between the two or are unaware whether they need one or the other. The truth of the matter is that homeowners and builders risk are two very different kinds of insurance.

You don’t need homeowners insurance during construction, as a homeowners policy will not cover homes under construction. However, it is recommended to have builders risk insurance coverage. This is specifically designed for residential properties that are in the process of being built.

As stated above, there are several clear differences between builders risk policies and standard homeowners insurance coverage. The main difference is that builders risk coverage is for residential buildings that are under construction, while homeowners insurance is only for homes that have already been built.

Homeowners insurance and builders risk insurance can also differ in terms of cost, as residential builders risk insurance will often be lower than a full home insurance premium. Plus, the type of coverage included may also vary, as standard homeowners policies cover not just the building, but also the contents of the building and personal liability, while builders risk policies usually only cover the structure and building materials.

Builders risk insurance should be taken out before construction begins at your site. You’ll need to compare options from different builders risk insurance companies and pick a quote that works for you. Once that’s done, you’ll simply need to pay the premium for your insurance while the building is being constructed and make a claim with the company if any accidents occur.

As standard, a residential builders risk policy will cover you for the following damages and problems:

• Damage to the structure due to storms and wind 
• Vandalism at the construction site 
• Losses or theft of building materials 
• Fires and smoke damage 
• Hail storms 
• Explosions 
• Lightning strikes

Each policy is different and may have certain exceptions in terms of the level of coverage you get. This is why it’s important to check the details of each policy before you agree to it. In general, it’s important to note that a residential risk policy will not cover any possessions you store at the site, nor will it cover medical and liability costs due to injuries on site.

Again, this will depend on the policy you choose. As standard, builders’ risk insurance policies will typically last up to 12 months. This may or may not be enough time for your construction to be complete. If you’re still building after the end of the 12-month period, it’s usually quite easy to renew your policy.

If you’re looking for residential builders risk insurance in New York State, Next Century Insurance can help. As an insurance company, we have years of experience in finding the best possible policies for our clients, and we work with a range of trusted insurers to help you get coverage that is affordable and reliable. 

Ready to learn more and get the best policy for your construction project? Contact the NCI team today for a free, no-obligation quote for residential builders risk insurance.