Contractors, Construction and Builders Risk Insurance in Middletown, OH

Construction projects can be unpredictable. From weather delays to theft or vandalism, a lot can go wrong before a structure is complete. Whether you’re a general contractor, a property owner or a developer, having the right insurance coverage during the construction phase can help protect your financial investment.

Who Needs Builders Risk Insurance?

Builders risk insurance is generally recommended for anyone with a financial interest in a construction project. This can include the following:

• General contractors—If you’re overseeing the project, you may be responsible for protecting the materials and structure while work is underway.

• Property owners—Even if you’ve hired someone else to manage the build, you may still need to ensure the project is covered against unexpected losses.

• Subcontractors and specialty trades—In some cases, those working on specific elements of a project, such as electricians or roofers, may be required to carry their own builders risk coverage.

• Lenders and developers—Many financing agreements will require builders risk insurance to protect the loan investment while construction is ongoing.

This type of policy typically covers materials, equipment, labor and sometimes even temporary structures or debris removal, depending on how it’s written.

When Is Builders Risk Insurance Required?

Builders risk insurance isn’t always required by law, but it is frequently required by contract. Construction lenders often include it as part of the financing conditions. Similarly, project owners may specify coverage requirements in construction agreements to protect the work and financial investment from potential losses.

The timing also matters. Coverage must usually be in place before ground is broken or materials are delivered to the site. It typically lasts until the project is completed and accepted, or when permanent insurance, such as a commercial property policy, takes effect.

Build With Confidence

Construction projects come with built-in risks, but the right insurance coverage can help you manage them. If you’re working on a project in Middletown, OH, Insurance Associates can help you explore builders risk options that fit your needs, role and timeline. Contact us today to learn more.