Builders Insurance Group Reviews

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Builders insurance cover, also referred to as Builders’ Risk Insurance or Course of Construction, is a very specific type of property insurance coverage. This type of insurance offers cover for buildings that are currently under construction. It also covers the land surrounding the new construction.

Builders insurance cover can provide insurance cover for a structure only, and it also covers the materials that are at the building site. The type of cover even insures the materials that are in transport to the building site. This is the type of insurance that most contractors are required to have before construction begins.

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With this type of insurance cover, damages are paid up to the limit amount on the policy. The limit must reflect the final completed value of the building to include the materials and labor cost. However, it does exclude the cost of the land. This is one reason why most insurance adjusters recommend using the construction budget in order to determine the best monetary limit for insurance.

This type of insurance coverage can be written for:

3 months
6 months
12 months

If the construction project is not completed by the time the life of the insurance cover has ended, it can generally be extended. Keep in mind, the construction project is only granted one extension.

How To Understand Builders Insurance Cover

This is risk insurance cover that will provide cover if an insured structure is damaged due to a variety of means including:


It is important to read over your builder’s insurance cover so you can understand the limitations and exclusions that are specific to your individual policy.

There is also limited cover that is also provided for situations like collapse. These exclusions can include:

Water damage
Theft by employee
Breakdown (Mechanical)
Weather damage

There is a very important exclusion that must be read thoroughly, and that excludes coverage for types of damage that results from materials, design, planning and workmanship. These are the types of issues that may be covered under a professional liability cover instead of builders insurance cover.

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The cost of this type of insurance cover will be between one percent and four percent of the total construction cost. However, the final cost will actually depend on the exclusions and cover the policy will have. Fortunately, when working with a reputable insurance company, you can be sure that your claims will be expedited quickly.

The company will also help resolve any claims that may come up during the construction process. Although tradesmansaver company can help cover some of the ‘soft’ expenses of the construction project, it may be necessary to ask the them to include these expenses into your cover. Keep in mind, that may increase the cost of your overall premium.

Builders insurance cover requires that subcontractors have their own insurance cover. Also, this type of cover does not cover equipment or tools. Accidents on the job site are not covered either, so you will need to have liability coverage as well. For specific information about your cover, refer questions to your insurance agent.