Builders Risk Insurance in Jackson, MS
Building your own home or having renovations done can be an exciting and rewarding experience. However, these projects represent significant financial investments that must be protected by appropriate loss control measures. With this in mind, understanding and ensuring adequate builders risk insurance should be a top priority.
What Is Builders Risk Insurance?
Builders risk insurance establishes a contractual agreement between policyholders and insurance companies that may ensure access to critical funds and resources in response to covered losses. Generally, these policies focus on providing financial protection for structures built from the ground up and having repairs or renovations performed.
What Does Builders Risk Insurance Cover?
The exact capabilities of this type of insurance may vary and policies can often be customized to suit your unique circumstances. However, coverage can generally provide financial assistance in response to fires, theft, burglary, vandalism, and weather-related perils. Most builders risk insurance includes coverage for losses and damages related to the following:
- Structures—Your home itself, including its roof, walls, foundations and other components, may be financially protected by your insurance.
- Temporary structures—If signage, fences and scaffolding are damaged on a job site, this insurance may help you recoup losses.
- Materials and equipment—This insurance feature may compensate you for losses involving building materials and tools stored on-site.
- Key documents—This coverage may financially protect blueprints, specifications and other important paperwork involving your project.
Business interruption costs—If a covered incident delays construction, a builders risk policy may help pay for resulting losses and expenses, such as additional contractor fees and real estate taxes.
How Much Builders Risk Insurance Do I Need?
Builders risk coverage for homeowners may be complicated, but investing adequate time into assessing your circumstances and maintaining an appropriate policy is essential. When determining your needs, the following factors should be considered:
- Total cost of your project
- Location
- Experience levels of contractors
- Estimated duration of your project
- Building materials
Working with a qualified insurance professional, such as those at the Paige Agency, may help you ensure your policy is sufficient.
Who Buys Builders Risk Insurance?
In many cases, general contractors are responsible for purchasing a builders risk policy, although property owners and other invested parties, such as subcontractors, architects and engineers, should also be listed on policies. As a homeowner, you should take a proactive approach to understanding your circumstances and ensuring adequate insurance has been retained, as there may be situations where doing so is your responsibility.
Get the Right Coverage
With over 40 years of experience serving the coverage needs of homeowners, families and businesses, the dedicated staff at the Paige Agency is ready to help you understand and address your insurance needs. Contact us today to learn more.