You know you need builders risk insurance, but how do you know which policy to choose?
Undertaking a construction project without builders risk coverage is dangerous. If something happens to the materials you’ve purchased for your project or the project itself before construction is complete, you could end up a facing a hefty bill with little to show for it. The good news is that builders risk insurance can step in to cover your project and the materials and equipment needed for it while it’s under construction. The bad news is that picking the right policy isn’t always easy. Use these tips to make it easier to choose the proper coverage.
- Figure out the value of your project. Choosing the right policy largely comes down to making sure you have enough coverage. But how much is enough? Undertake a comprehensive maximum probable loss (MPL) assessment to find out. Your insurance agent can help you complete this assessment, which will look at things like the estimated replacement cost of your project assets, your projected revenue after opening, and the risks associated with the project.
- Anticipate the risks you’ll face. As you complete your MPL analysis, you’ll have to think about the risk of loss for this specific project. Make sure you don’t forget about location-specific hazards, including storm risks. For example, if your building is near a river, find out how regularly it floods.
- Expect the unexpected. Even if you create what you believe is a comprehensive list of risks, you might miss something. It’s a good idea to consider the possibility of project delays and how they would impact the value of your build.
These tips can steer you in the right direction. But if you really want to be certain you’ve picked the right policy contact Nahai Insurance Services. We can tailor the right builders risk insurance for your upcoming project. Call us today!
