Daniels Insurance Agency

Builder’s Risk Insurance Designed for Your Needs

At Daniels Insurance Agency, we specialize in insuring contractors – from general contractors to artisans – throughout New Mexico. We offer a full 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 them 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 to be used in the construction. It also covers property of others for which an insured may be liable, and removal of debris 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 full value of the project in its finished state, which is typically the contract price, but there are other considerations that must be evaluated as well, including:

  • The possibility of increased repair costs based on timing, inflation or economic situations such as wage increases. This would apply not only for contractor costs but also sub-trade costs as well.
  • 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 or 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, which 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, hoardings, form work and other site structures that will not be re-used and will have to be re-supplied.
  • Any construction soft 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 that there is no standard builder’s risk insurance policy, which is why working with a firm such as Daniels Insurance Agency with the experience we have in this area is critical in helping you obtain the right coverage.

We’ll help you prepare for tomorrow today.

Daniels Insurance Agency is poised to help you navigate the risks you face today while assisting you with solutions and strategies to support your business as it expands and grows. We are also an integral part of the communities we serve, understanding the issues of our region to effectively serve our business and individual clients. Give us a call at 800-530‑8885 to find out how we can assist you.