Builder's Risk Insurance is essential to have to keep your building project protected from factors outside of your control. It is not required by law, but any trustworthy contractor should carry this insurance for you.
When your jobsite is under construction, a number of things can go wrong. A natural disaster can come through and damage your in-progress building, rather that be a hurricane, an earth quake, a tornado or a heavy rain storm. It can even cover theft depending on the policy.
Many independent contractors won't carry builder's risk insurance because they can provide their services at a lower cost without it. This creates unfair competition in the market, making it difficult for legitimate builders to compete. While these independent and Amish contractors look out for their own financial benefit, they leave you completely unprotected should anything happen to your project while in construction. If damage occurs to your building, even if it's not your fault, you will likely be required to pay thousands of dollars in repair costs yourself. This includes material and labor. You will essentially have to repay for a building you already paid for once, even if the building was 99% completed with the accident occurred.
When a contractor doesn't carry builder's risk insurance, they are essentially forcing you to obtain it yourself. Obtaining builder's risk insurance from your regular insurance agent and be a difficult process. Insurance agents and companies that don't specialize in construction can have a difficult time putting together an effective policy for you.
Key takeaway: When going into a contract with a builder, always make sure they carry builder's risk insurance your protect your in-progress building.
Kirkham Building System, Inc. carries builder's risk insurance, as well as a warranty, on all of it's projects. The insurance covers all building material and labor in the event of theft, vandalism, fire and weather. We would love to help you plan and build your garage, workshop, barn, or commercial space. Give us a call at 740-548-7810 or fill out a contact form on our website and we'll connect you with a sales reprehensive.