Builders risk insurance Oklahoma is not an easy find, not only in the state, but also in robust communities such as Edmond OK, Norman OK, and Broken Arrow OK. If you’re wondering about builders risk insurance for homeowners and its benefits, today we will go through what it is, what it covers, and how it works, so you can purchase it and protect what belongs to you!
This Is Builders Risk Insurance For Homeowners, Not For Businesses
Builders risk insurance, also known as course of construction insurance, provides the kind of coverage that’s meant to protect your insurable interest in materials, equipment, and/or fixtures, either before or after installation during a construction or renovation project. In simple terms, the builders’ risk insurance policy covers the loss or damage of the materials involved in a construction or renovation. These materials are insurable because they can be often found at risk of loss, damage, theft, etc.
New build home insurance quote coverage is usually overlooked, but not because it’s not useful, but because it’s misunderstood and it’s not often addressed in the situation of construction or renovation.
So, how does builders risk insurance work? For example, let’s say you are building a wood-framed residential home and your contractor causes a fire that destroys everything, all the investment you’ve made in materials. This policy will cover your loss. This is why the coverage under builders risk insurance for homeowner must be clearly stated in the construction contract.
What Are The Risks That Can Be Covered In A Builders Risk Insurance Policy?
Builders risk insurance in Oklahoma City OK, Tulsa OK or around the state will cover damage done to the structure of your construction, which may be caused by a variety of perils including fire, theft, wind, hail, lightning, explosion, vandalism, vehicles, or aircraft.
Of course, the builders risk insurance policy may vary, but standard exclusions to keep in mind include water damage, employee theft, earthquake, weather damage to property that’s out in the open, government action, war, voluntary parting, contract penalty, and mechanical breakdown.
Are Extensions to the Course Of Construction Insurance Policy Required?
In certain situations, you will need an extension of coverage to protect your property from situations that are not already included in the policy. Some of the most common builders risk insurance extensions serve the purpose of:
- Protecting your property from loss while it’s being transported to the job site.
- Protecting scaffolding, temporary structures, and construction firms, but only while they are at the location you have reported.
- Protecting property that will be used or installed in the location that’s being insured.
- Covering the expenses of removing debris from the property if it was caused by a covered peril or loss.
- Protecting against water damage caused by backed-up drains or sewers.
Is There A Way To Know What Is The Average Cost of Builders Risk Insurance?
Once you’ve secured the loan to build or renovate your home, you will need to include the course of construction insurance in the loan agreement. Homeowners often do a bit of research to find the average cost of builders risk insurance, but you won’t find it. Honestly, there’s no average cost for builders risk insurance, just like there’s no average cost for homeowners insurance or auto insurance.
This has to do with the fact that there are too many factors that determine the builders risk insurance cost. Among those factors, we can include the policy holder’s credit rating, the square footage of the home, the quality of materials and workmanship, the state, the zip code, etc. All these factors contribute to a great variety of costs that’s simply impossible to narrow down to an average cost.
To find your builders risk insurance for homeowner, you will have to search for insurance companies that specialize in this kind of coverage. Homeowners insurance companies may sometimes include a separate policy for new home construction insurance, or they will offer an endorsement on your home insurance policy so your construction will be covered. Either way, you’ll need to do your research and be thorough so you can find the insurance company that will work for you.
This Is Why You Should Get A Builders Risk Insurance Quote
You will need builders risk insurance quote for many different reasons. First of all, your lender will require that you have a builder risk insurance policy because it will cover their loan.
Second, a quote will offer coverage that extends to losses such as theft, property in transit, property owned by subcontractors or supplies, and property in storage. This is something you need to discuss with your insurance agent because this specific type of coverage is not always included in the insurance policy.
Third, builders’ risk insurance can also cover any damage done to newly paved surfaces and/or installed plants, trees, etc.
Additionally, endorsements to the course of construction insurance policy may extend coverage as much as you need according to your situation.
For example, there may be unforeseen situations, such as the coronavirus lockdown that will hinder construction activities and supply acquisition. This means you may need more time beyond the twelve months that are usually provided by the policy to finish your construction or renovation. And endorsement will allow you to receive the extension you need to finish your project securely.
Once you realize the usefulness and relevance of builders risk insurance for your construction and renovation projects, its value becomes undeniable. It’s simply the best way to protect your property while it’s under construction, as well as the investment you’ve made in materials, which is often quite substantial. Too substantial to leave unprotected.
Builders risk insurance Oklahoma is essential to protect your property and investment in a very specific situation, so we highly recommend you do your research to find the best insurance company in your community. As mentioned before, the best option is an insurer that specializes in this type of policy, but you can always find homeowner insurance companies that offer builders risk insurance separately, with the same benefits.