Business Owners Insurance by Altima

Builder's Risk Insurance provided by Altima Auto Insurance Agency

Because every construction project is unique, each builder’s risk policy is different. You can customize your policy to fit your project’s needs by getting coverage extensions.
What is Builder's Risk Insurance?

Builder’s Risk Insurance, also known in some areas as Course of Construction, is a unique kind of property insurance. It’s a form of insurance that covers a building where the building or insured area is presently being constructed. It can cover just the structure, or also the materials on-site waiting to be installed or transported to the job site and is a type of insurance that most owners will ask every contractor to carry.

The builder’s risk insurance policy will pay for damages up to the coverage limit. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, excluding land value). The construction budget is the best source for determining the appropriate limit of insurance.

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What does Builder's Risk Insurance Cover?
Why is Builder's Risk Insurance important?

A builder’s risk insurance policy helps protect your construction projects from certain kinds of property damage. It can also help cover additional soft costs, or expenses not directly related to construction, if property damage causes a delay. This can include:

  • Lost sales
  • Rental income
  • Additional interest on loans
  • Real estate taxes

Because every construction project is unique, each builder’s risk policy is different. You can customize your policy to fit your project’s needs by getting coverage extensions.

How does builders’ risk insurance differ to contractor’s general liability insurance?

This is where confusion often arises. A contractor might ask: ‘Why do I need builder’s risk insurance when I have contractor’s general liability insurance?’ While on the surface the two coverages may seem similar, they play very different (but equally important) roles.

While builder’s risk insurance covers the contractor’s property or equipment during construction, the contractor’s general liability insurance policy covers bodily injury, property damage and any resulting liability that may arise from possible accidents. It protects contractors if they’re accused of causing injury or property damage.

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As an independent agency, Altima Auto Insurance Agency
Helps you find the right Builders Risk Insurance Coverage
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Arlington, Texas
814 W. Arkansas Ln. Arlington, TX 76013
We extend coverage to individuals and businesses in Fort Worth, Dallas, Duncanville, Arlington, Garland, Irving, River Oaks and Haltom City

Property Coverage

Risk Factors
Your construction property can get damaged by any unspecific event like fire, explosion, hail, etc and you become liable for the same.
Solution
A builder’s risk insurance policy helps protect your construction projects from certain kinds of property damage. It can also help cover additional soft costs, or expenses not directly related to construction, if property damage causes a delay. This can include lost sales, rental income, additional interest on loans and real estate taxes.

Note:  Please talk to your financial consultant to check all the facts before proceeding

Property Coverage for Others

Risk Factors
There can be a possibility that the signboards you rented are damaged at your site and you become liable for the cost of repair.
Solution
The majority of builders risk insurance policies will not cover supplies or equipment that belong to others. Some insurance providers will offer this coverage as a policy extension for the tools owned by others.

Note:  Please talk to your financial consultant to check all the facts before proceeding

Debris Removal Coverage

Risk Factors
The debris can be a major issue if you are into construction of buildings and other structures.
Solution
Debris removal coverage covers the cost of clearing and disposing of the debris and materials from a covered loss, which can often be a massive expense. Some insurers will also cover demolition costs if remaining parts of a damage structure must be torn down.

Note:  Please talk to your financial consultant to check all the facts before proceeding

Material Cost Escalation Coverage

Risk Factors
There can be a possibility that you gave a quotation for a construction project but the material prices increased due to changes in the economy.
Solution
This protects the policyholder from any major increases in cost of materials and services that occur during the course of the project. If unforeseen economic changes lead to a drastic change in cost for certain materials, this policy extension covers that cost.

Note:  Please talk to your financial consultant to check all the facts before proceeding

Law / Local Ordinance Changes Coverage

Risk Factors
There can be a possibility that the rules, regulations and other laws change during your construction project and make an impact on the same.
Solution
If a law or local ordinance changes during the construction project, this policy protection will cover the added costs of complying with the new laws, plus the costs of any delays that the new compliance adds to the project.

Note:  Please talk to your financial consultant to check all the facts before proceeding

Equipment Testing Coverage

Risk Factors
Your equipment like cement mixer, pressure vessels may breakdown and the construction may halt. You may incur a loss till everything normalizes.
Solution
If a loss occurs during mechanical, pneumatic, electrical, or hydrostatic testing, this extension will cover the cost of the loss. This covers equipment such as A/C units, power generators, pressure vessels, boilers, production equipment, and more.

Note:  Please talk to your financial consultant to check all the facts before proceeding

Labour Expenses Coverage

Risk Factors
There can be instances where your labour expenses increase due to commitments and labour strike for increase in wages.
Solution
Some policies will cover the additional labour costs that result from a covered loss; others will offer that coverage as an optional extension. Almost all insurers will offer this form of coverage.

Note:  Please talk to your financial consultant to check all the facts before proceeding

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