Machines | What is Builders Risk Insurance

Builder’s risk insurance is “coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.” http://www.ibourl.net/insuranceanalysis What is Builders Risk Insurance America’s economy suffered dating back to 9/11. The unfortunate scenes resulted in the worst economy since the great depression. Many families were forced to downsize or eliminate their homes. Corporations of all sizes were forced to down size staff and operations. America has history of rising to the occasion. America bounced back from the great depression as improvements happened during our recent recession. Unemployment numbers have decreased since 2009, which results in jobs. Jobs created from new business development, new buildings, strip malls, new store front locations. All which resulted in new construction project or renovations. When conducting construction projects or renovations many high risk factors are involved with this type of risk. Prior to a new business opening, a business must undergo a location make over; again resulting in new construction or renovations. During these projects property used to build the structure may become damaged or stolen. What is builders risk insurance I remember watching an episode of “Flip or Flop” via HGTV. On this particular episode I remember a home undergoing a renovation project. Prior to the project, trespassers were residing inside the abandoned home. Obviously the folks ran away to avoid law enforcement. Further into the episode, all the contractor’s tools, supplies, mixtures were stolen from the home. Unfortunately no one was caught or arrested. However the burden of theft now derailed all renovation plans. What is a contractor or homeowner to do in these situations? How does one recover physical stolen property or regain the financial loss? What is builders risk insurance Did you know construction sites are high risk areas for theft? Rather residential or commercial projects, construction sites often times are left unguarded. High value materials such as tools, concrete mixtures, flooring and other valuable materials. The high cost of construction materials induces some people—including some contractors—to steal materials from construction sites in order to reduce their own building costs. In recent years, there has been a dramatic increase in the price of construction materials. For example, from January 2003 to May 2004 the price index of 11 key construction materials more than doubled. Thus, the local home building economy affects construction site burglary rates. Local material shortages, including those caused by natural disasters, will similarly affect the nature and amount of construction site property stolen. What is builders Risk Insurance http://www.ibourl.net/insuranceanalysis How does a contractor protect valuable assets? How does a homeowner protect building materials during a renovation? Understanding builders risk insurance is imperative prior to any new construction or renovation project? What is builders Risk Insurance Builder’s risk insurance is “coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.” It is important to understand that Builder’s Risk Insurance doesn’t include liability coverage for on or off site job related injuries. Builder’s Risk insurance is a special kind of property insurance that will provide coverage for stolen materials and vandalism to an active construction project. In a recent study done by the Center for Problem – Oriented Policing, “Patterns of repeat victimization for burglary at single-family house construction sites may not be obvious. Although a particular construction site might not be victimized repeatedly, a particular builder may be. For example, a comprehensive study in Port St. Lucie, Florida found that although only 12 of 254 individual sites were burglarized twice, 20 percent of builders accounted for nearly 70 percent of burglaries.” In another study conducted by the Australian Government Found that “The incident of theft and vandalism in 2002 affecting builders surveyed that 39 percent of residential builders in Australia had suffered theft or vandalism. Nineteen percent had experienced theft alone and seven percent had experienced vandalism alone. A further 13 percent of builders had experienced both theft and vandalism.” In addition to Theft and Vandalism Builder’s Risk Insurance provide Property Damage resulting From: Fire Wind Lightning Hail Explosion Vandalism Vehicles/Aircraft We help Businesses in Texas – Georgia – Ohio and Illinois.