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njbuilding143

Builders Risk and Premise Liability Insurance..

njbuilding143
9 years ago

Just wanted to reach out to others building their homes and see what kind of figures you were seeing for Builders Risk Insurance as well as Premise Liability Insurance... I just quoted this out through two different brokers.. We are using a custom home builder for the building of the home..

Broker A:
- Builder Risk Insurance:
- 12 month plan - 550,000 coverage - 2,500 deductible - $5,442 (5,967 with 500k premise liability)
- 9 month plan - same coverage / deductible - $4,170 (4,669 with 500k premise liability)

Broker B:
- Builder Risk Insurance
- 12 month plan - 500,000 coverage - 4,800
- 6 month plan - 500k coverage - 2,640

Just wanted to see if these figures are in line with what others are seeing.. This is for the construction of a single family home with 2,832 square feet in New Jersey... This is also complete coverage to include any thefts, fire, weather, etc..

This post was edited by Jason143NBPD on Thu, Nov 13, 14 at 20:07

Comments (7)

  • Kathy Harrington
    9 years ago

    That seems high. We have a builders risk policy 12 month 1.7 with 5000 deductible for $3234. We got ours through Zurich It is written in our name and has our builder listed as additional insured. It was issued for a home in Colorado approximately 4700 sq ft

  • njbuilding143
    Original Author
    9 years ago

    Thanks for the feedback.. I am going to assume that I will be looking at a rate hike just because of the area... But perhaps I went too low with the deductible.. I will have to see what the lender requires.. I had them do the lowest deductible which was 2,500.. Perhaps going up to 5k will lower the overall rate..

  • NChomegirl
    9 years ago

    We just got ours in NC. Coverage for $417k 12 mo one time premium $1500 with $1000 deductible. Through Zurich.

  • njbuilding143
    Original Author
    9 years ago

    Thanks for the input.. I just contacted Zurich and got an amazing quote.. 1400 for full coverage with 1k deductible.. But I noticed they did not offer premise liability.. I know the builder must carry his own liability insurance but even in the contract he specifically puts "liability insurance deemed necessary for his own protection".. With that I would think I should probably get some kind of liability coverage just in case something should happen on the property.. At least until we can get a homeowners policy.. The problem is that most of the insurance sites only list businesses for general liability.. I don't see any for personal protection.. Did you guys also purchase separate liability insurance or did you strictly go with builder's risk?

  • abs9940
    9 years ago

    Hi Jason -
    I'm working on securing builders Risk in NJ (Westfield). I'm expecting to receive quotes this week. I'll be happy to share with you once i receive them.

  • runhrdr
    9 years ago

    Hi Jason - we are also getting ready to start construction and have some builder's risk quotes with Zurich through our current homeowner's insurance broker. He was saying we also needed premise liability insurance, but none of the other broker's quotes mentioned this. I also thought that liability insurance was just handled through the general contractor. What did you end up doing?

  • chellefnp
    9 years ago

    We are in Missouri and got a Zurich policy with a $2500 deductible for only $547. We are going to be our own GC, and my agent recommended checking our current homeowner's policy regarding the premise liability--most major insurers use the same boilerplate language which reads that an insured location includes:

    "land owned by or rented to an insured on which a one or two family dwelling is being constructed as a residence for an insured"


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