Builder's Risk Insurance - Homeowner vs GC?

gaonmymindAugust 20, 2012

We have decided to get builder's risk instead of having our builder do it so that we are the beneficiaries should something happen. The GC has a few million in insurance related to his business and workers comp.

Is there anything we should know about this? Any experience to share?

Also anyone know a good agent that will cover GA?

Thanks!

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melaska

We are the owner/builders for our construction. Our GC has a million dollar policy of his own.

We had quite a time trying to find a policy since we are building out of pocket so that really limited our search. I suggest going to a company that deals with a multitude of insurance companies.

The State Farm policy we considered would only last for a year and we didn't think we'd be done by then. Our agent finally found a company (Zurich) that would renew for another year and the premium was fairly inexpensive.

Make sure you have all the extra riders you'll need. Since we live in earthquake country (Alaska - and our town was destroyed in the '64 quake). Thank goodness this company offered an earthquake rider. The deductible is quite large but worth it.

    Bookmark   August 20, 2012 at 11:42AM
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pbx2_gw

OP - we just got our BRI the day before we broke ground alst week.
No words of wisdom just relaying our experience.

Our insurance agent instructed us to get coverage to match our construction cost - This covers theft & fire also + a second additional coverage part for liability in case some sues us for stepping on a nail while they are visiting.
No coverage for land - land never burns down (LOL).

So the overall coverage of both parts is about $1M.

Had flood coverage put on even though we are not on FEMA flood zone list just in case of hurricane.

OTherwise, it was short & sweet & similar to any other regular home insurance.

    Bookmark   August 20, 2012 at 1:57PM
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mcakeshop

We just got ours as well. Our agent got it through Zurich. He mentioned only a handful companies actucally offer this coverage so your options might be limited.

The policy is good for a year, but you don't get back any money for any unused coverage/time period, i.e. if it takes 4 months or 12 months it sill costs $xxx

    Bookmark   August 20, 2012 at 5:14PM
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gaonmymind

We got a quote from Zurich as well. Seems like every deductible is $2500. We thought that was high or is that standard?

    Bookmark   August 20, 2012 at 5:27PM
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pbx2_gw

For your comp - our deductible is $500.

    Bookmark   August 20, 2012 at 6:01PM
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renovator8

You may need to clarify when materials and equipment belong to you and are covered under your insurance instead of the contractor's insurance.

    Bookmark   August 21, 2012 at 8:11AM
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downsy

We carried the insurance policy ourselves through Travelers and then converted it to homeowner's once we finished the house and moved in.

The only problem we had during the build was a small case of vandalism (broken window) and our deductible was too high to cover that anyway. Thankfully we never had to "USE" the policy.

    Bookmark   August 21, 2012 at 10:16AM
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gaonmymind

Thanks everyone! We went with an insurance company that we have a policy with for another property we own. Got a good rate for having another policy and a discount for paying in full!

    Bookmark   August 22, 2012 at 7:18PM
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