If you’re looking for builders risk insurance Oklahoma companies, more specifically Oklahoma City , Tulsa, Broken Arrow, Edmond and Norman, here’s everything you need to know about this very useful insurance policy.
Builder risk insurance, also known as new home construction insurance or course of construction insurance, is a kind of policy that will allow you to insure the construction of your residential home, typically a custom built home.
You’ll be able to choose whether you want the insurance policy to cover only the structure of the construction or also the materials on-site that are waiting to be installed or transported to the construction site.
The builders risk home insurance has a coverage limit that will pay for damages, and the limit reflects the value of the completed structure. This includes materials and labor costs, but not the value of the land. This kind of insurance can cover a period of 3 months up to a year, and it can be extended if construction is not completed by that time. Extensions can typically be done only once, though, which is something to keep in mind.
The builders risk insurance in Oklahoma policy will cover damage caused by lighting, fire, wind, hail, vandalism, theft, explosion, and collision from vehicles or aircraft. This kind of policy could also offer limited coverage for collapse and other situations.
The exclusions of the builder’s risk insurance policy include: war, government action, water damage, weather damage, earthquake, mechanical breakdown, voluntary parting, contract penalty, and employee theft. Coverage may also be excluded for damage as a result of faulty materials or design, planning, or workmanship.
If you want to be certain that your house construction insurance policy will cover all your bases, make sure you read the coverage limits and exclusions very carefully.
The main reason you need this kind of insurance is that it offers coverage that’s broader than the standard homeowner’s policy.
For example, let’s say you’re having your house built out of wood and a fire is started that damages the construction. Your builder’s risk insurance will cover that cost. It will also cover the theft of building materials, property in storage or in transit, and it might also cover the property of your subcontractors and suppliers.
Another great benefit of builders risk insurance for homeowner is that you can obtain additional coverage through endorsement. This way you can cover damage caused by wind storms, floods, etc.
What’s more, the policy terms are attractive, allowing you to purchase policies that cover a period of 12 months for new construction projects and 6, 9, or 12 months for remodeling or renovation projects.
Builders risk insurance for homeowner is a must if you want your property to be safe during the construction process. So many things can happen during construction or remodeling that can be detrimental to your property. Why not get a builders risk insurance quote today and make sure your property is secure?