© 2011 Farmin Rothrock & Parrott
Companies We Feature...
© 2011 Farmin, Rothrock & Parrott, Inc
Builders Risk Insurance
Builders Risk insurance covers the unique exposure of a building
under construction. The reason this risk in unique is because the
value of the structure can change daily while construction is
underway and therefore the insurance protection must change
daily as well. Builders Risk insurance, sometimes called a
Course of Construction policy, specifically addresses this need.
The policy is rated based upon the finished value of the
structure. However, the rating also takes into account that there
is little if any exposure at the start of the policy and the final
premium reflects that. This is the reason that many companies
cannot issue a Builders Risk policy if the construction has
already advanced beyond a certain point, maybe 10 or 15
percent.
Many companies can provide additional protection under the
policy for building materials on premises or for what are known
as “soft costs”. These are costs that arise from the loss of a
building under construction in addition to the structure itself and
can include things like additional architect or engineering fees.
The Builders Risk policy can be obtained either by the owner of
the project or the contractor. Often a contractor will prefer what is
called a “reporting form” policy which is a single policy but the
contractor can add buildings as he starts them and delete them
as the buildings are either sold or turned over to the owner.
Owners and contractors can also purchase a “one-shot” policy
which covers a single building.
The most important thing about Builders Risk is that the
purchase of the policy should be planned before construction
starts. Farmin Rothrock & Parrot specializes in commercial
insurance so contact us today for help in planning your Builders
Risk coverage or any other aspect of your insurance program.
Request a Quote for
Builders Risk
Insurance
For Even Faster
Service, Call Us
Right Now!
(509) 323-3232
8:00AM - 4:30PM
Monday - Friday
Companies We Feature...
Builders Risk Insurance
Builders Risk insurance covers the unique exposure of a building
under construction. The reason this risk in unique is because the
value of the structure can change daily while construction is
underway and therefore the insurance protection must change
daily as well. Builders Risk insurance, sometimes called a
Course of Construction policy, specifically addresses this need.
The policy is rated based upon the finished value of the
structure. However, the rating also takes into account that there
is little if any exposure at the start of the policy and the final
premium reflects that. This is the reason that many companies
cannot issue a Builders Risk policy if the construction has
already advanced beyond a certain point, maybe 10 or 15
percent.
Many companies can provide additional protection under the
policy for building materials on premises or for what are known
as “soft costs”. These are costs that arise from the loss of a
building under construction in addition to the structure itself and
can include things like additional architect or engineering fees.
The Builders Risk policy can be obtained either by the owner of
the project or the contractor. Often a contractor will prefer what is
called a “reporting form” policy which is a single policy but the
contractor can add buildings as he starts them and delete them
as the buildings are either sold or turned over to the owner.
Owners and contractors can also purchase a “one-shot” policy
which covers a single building.
The most important thing about Builders Risk is that the
purchase of the policy should be planned before construction
starts. Farmin Rothrock & Parrot specializes in commercial
insurance so contact us today for help in planning your Builders
Risk coverage or any other aspect of your insurance program.
Request a Quote for
Builders Risk
Insurance
For Even Faster
Service, Call Us
Right Now!
(509) 323-3232
8:00AM - 4:30PM
Monday - Friday