Influencing Factors That Determine Your Builder’s Risk Quote
So, you’ve closed the deal and signed the control – but there’s one stipulation. In order to do the work on the project, you must carry builder’s risk insurance. If this is a similar scenario to what you’re experiencing, you will need to prepare some information before calling your contractor insurance provider. Here’s what you need to know about what factors go into a quote, and what information you’ll need to get the most accurate quote.
You’ll need to know where exactly the project is located. The builder’s risk cost will vary greatly depending on the site location. High-risk sites are areas prone to extreme weather conditions such as floods and natural disasters like earthquakes. Even highly-populated areas that experience vandalism could come with a larger premium than a low-risk location.
Business Size and Status
Small construction businesses typically take on different projects than larger construction businesses. In addition, your business status will also impact your quote. Non-profit and charity organizations will receive different rates than for-profit construction companies.
Typically, contractors who aren’t fully licensed or who have less than two years of experience can expect to pay a higher rate on their builder’s risk insurance policy. Contractors who have been in the field for years and have all types of certification can expect to pay less.
Total Project Value
Think about the cost of all tools, equipment, materials, and labor. Add on the estimated value of the land to get a total project value. If you aren’t sure what your total project is worth, you may not be able to get an accurate builder’s risk insurance quote.
To get started, contact Nahai Insurance Services. We can tailor the right builder’s risk insurance for your upcoming project. Call us today!