Contractor Insurance And Risk Management Blog » Builders Risk http://www.contractor-insure.com/blog Where Home Builders And Trade Contractors Turn For Advice! Wed, 28 Dec 2011 13:23:39 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Should Builders Risk Be Placed By The Owner? http://www.contractor-insure.com/blog/index.php/2010/07/should-builders-risk-be-placed-by-the-owner/ http://www.contractor-insure.com/blog/index.php/2010/07/should-builders-risk-be-placed-by-the-owner/#comments Thu, 01 Jul 2010 14:27:09 +0000 admin http://www.contractor-insure.com/blog/?p=450 We are routinely asked by our builder clients if we believe it’s ok to have the homeowner purchase and carry the Builders Risk coverage.  The following are some points to ponder:

  • Are your materials covered while in transit and temporary storage?  If so, how much?
  • How are you going to insure your business profit and overhead on the job?
  • Where you going to obtain coverages for your scaffolding and construction forms?
  • Can you be certain the coverage is actually in force? 
  • Will the policy cover collapse or theft of building materials before they are permanently attached? 

The answers to the above questions are probably going to be unfavorable.  This is why we recommend that our builder clients carry the Builders Risk policy instead of allowing the homeowner to set it up.

 Source:  Jon Fritinger/Great American Insurance and Sadler & Company, Inc.

]]> http://www.contractor-insure.com/blog/index.php/2010/07/should-builders-risk-be-placed-by-the-owner/feed/ 0 Residential Builders Risk – Advantages Of The Unsold Dwelling Policy http://www.contractor-insure.com/blog/index.php/2009/02/residential-builders-risk-advantages-of-the-unsold-dwelling-policy/ http://www.contractor-insure.com/blog/index.php/2009/02/residential-builders-risk-advantages-of-the-unsold-dwelling-policy/#comments Fri, 06 Feb 2009 21:23:25 +0000 admin http://www.contractor-insure.com/blog/?p=144 New construction sales in the residential housing market have slowed across the country.  Many residential home builders have more unsold dwellings in inventory that ever before.  This can create a Builders Risk problem.  Depending on the insurance carrier, the builder may either not be able to report the unsold dwelling again on their monthly or annual reports if the dwelling has been in inventory for three years or the rate for the third year increases.
 
The solution for many builders is the Residential Builders Risk Unsold Dwelling policy.  One of the major advantages to the Unsold Dwelling Policy is that it can be canceled mid-term and part of the premium will be refunded.  Since most of these policies have a minimum earned premium be sure and check with your insurance agent.   The coverages provided under the Builders Risk Reporting policy are also provided on the Unsold Dwelling policy.
 
My advice is to discuss your Builders Risk options with your insurance agent if you have unsold dwellings BEFORE you pay your third year premium to determine which option is best for you.
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