Protection for projects under construction.
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Learn MoreBuilder’s Risk Insurance
At Daniels Insurance Agency, we specialize in insuring contractors – from general contractors to artisans – throughout New Mexico. We offer a complete portfolio of insurance solutions for construction firms, including Builder’s Risk insurance, which covers the interest of owners, contractors, subcontractors, and others involved in a construction project. The policy insures the stakeholders involved for the risks of property damage to the project. Generally, Builder’s Risk policies are intended to apply during the course of construction, erection, or fabrication and may also be utilized to insure projects in which existing property is being renovated.
Inside a Builder’s Risk Policy
A Builder’s Risk policy typically insures the structure under construction as well as materials, fixtures, supplies, machinery, and the equipment used in the construction for a specific period. It also covers the property of others for which an insured may be liable and debris removal of covered property damaged in a loss. In addition, the policy provides coverage for temporary structures, scaffolding, worksite trailers, landscaping, and excavation work. It also provides some coverage for work to be incorporated in the structure but stored offsite, and damage to items in transit.
The amount of coverage should adequately cover the total value of the project in its finished state, which is typically the contract price, but other considerations must be evaluated as well, including:
- The possibility of increased building costs based on timing, inflation, or economic situations such as wage increases. This would apply not only to contractor costs but also to sub-trade expenses.
- With today’s high inflation, supply-chain challenges, and labor shortages, it’s critical to look closely at the amount of insurance on a project and the impact of delays beyond the policy period.
- The value of any labor, equipment, or material that formed part of the project but was not covered under the contract price, such as volunteered work, donated materials, or anything supplied directly by the owner to defray the original contract price.
- Any consultant costs, such as architectural, engineering, and project management fees, are not usually part of the direct contract cost. Such fees may increase because of extra work required by any of these consultants after a loss.
- The cost of temporary facilities such as barricades, boardings, formwork, and other site structures that will not be re-used and will have to be re-supplied.
- Any soft construction costs including insurance premiums and legal fees.
- The possibility of increased costs due to by-law or zoning changes that may occur after the start of the project.
It’s important to note that there is no standard Builder’s Risk insurance policy, which is why working with a firm such as Daniels Insurance Agency with our experience in this area is critical in helping you obtain the proper coverage.
Daniels Insurance Agency: Your Trusted Risk Advisor
Founded in 1937, Daniels Insurance Agency has three locations throughout New Mexico and is licensed in every state to serve not only our local region but also clients with a national footprint. As an Assurex Global partner, we are among the world’s most prominent independent agents and brokers. We’re also a member of the Independent Agents & Brokers of America, a national alliance of business owners and their employees who offer a wide range of insurance and financial services products.
Our staff of 42 employees throughout our three locations is ready to provide you with the white-glove service you should expect from your insurance consultant. In fact, you’ll always reach someone at Daniels Insurance Agency. You can depend on that.
Give us a call at 800-530 8885 to find out how we can work together.
