Builders Risk
Builders Risk Insurance is insurance coverage that provides protection for damage to buildings or structures under construction, renovation or repair. This policy can include coverage for construction materials, heating and air-conditioning equipment, labor costs and expenses in addition to temporary structures such as construction signs, false work, fencing, cribbing, scaffolding, and even trees and other plants. A Builders Risk Insurance Policy also helps cover the costs of debris removal and defective workmanship.
This tailored coverage helps to protect the owner, the general contractor, subcontractors, and the financing bank in Michigan. Builders risk insurance is often misunderstood and the nuances of coverage are often not addressed until an actual loss occurs.
- Custom Homes, Condos or Town Homes
- Commercial Buildings
- Remodels / Renovations
- Model Homes and Sales Office Coverage
- Homes Pending Sales
Top O' Michigan Insurance knows you need a Builders Risk program that provides not only broad, comprehensive coverage for your projects, but at competitive pricing. Serving Michigan builders, contractors, developers, and property owners—especially in cities like Traverse City, Alpena, Petoskey, Grand Rapids, and Detroit. We will help you find the right coverage for each structure from the day you break ground until the day the structure is sold!
Frequently Asked Questions About Builders Risk Insurance
What is builders risk insurance?
Builders risk insurance is a specialized type of property insurance that covers structures and materials during construction. It protects against damage from risks like fire, theft, vandalism, and weather events.
What does builders risk insurance cover in Michigan?
In Michigan, builders risk insurance typically covers buildings under construction, materials on-site, temporary structures, and sometimes equipment. It can also protect against damage from fire, theft, windstorms, and vandalism.
How much does builders risk insurance cost?
The cost of builders risk insurance depends on the construction project’s total value, duration, location, and coverage limits. Premiums often range from 1% to 5% of the total construction cost.
Is builders risk insurance required by law?
Builders risk insurance is not legally required, but many lenders, contractors, or project owners require it before construction begins to protect their financial interests.
How long does builders risk insurance last?
Builders risk insurance typically lasts for the duration of the construction project, usually 3 to 12 months. Extensions may be available if the project timeline changes.
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