Is builders risk purchased when building single-family homes?
Contractors working on residential developments certainly may want a builders risk policy. These are major projects that can result in major costs if there’s a long delay.
Can contractors extend a builders risk policy in the event of a construction delay?
Many builders risk policies can be extended once if there’s a delay that extends work beyond the expected timeframe. Fewer policies offer multiple extensions, so contractors should be prepared to get a new policy if work goes beyond a one-time extension. Select policies might not have an option for even one extension.
Contractors should discuss their possible need for an extension with an experienced insurance agent, who can then see which policies would best suit a contractor’s situation.
How much do contractors pay for builders risk policies?
How much contractors pay for their builders risk policy depends on many factors. The scope of a project, type of construction, expected timeline, equipment used, and contractor’s track record all can impact premiums.
To get accurate quotes for a particular project, contractors can work with an independent agent. Independent insurance agents are able to request custom quotes from several insurance companies, and can do so quickly.