What Are Builder’s Risk Policy Extensions?

SummitCover understands the complexities involved with construction projects are numerous and present their own set of risks - ranging from unexpected weather conditions and theft/vandalism incidents, which could wreak havoc with both your schedule and budget. Builder's risk insurance provides essential financial protection in case losses do occur during its lifespan. This blog post by SummitCover will discuss “What Are Builder’s Risk Policy Extensions?”

Builder's Risk Insurance

A builder’s risk policy offers financial security against damages to materials, tools, and equipment as well as structures during their completion phase, along with potential protection from physical loss.

Though standard policies provide adequate coverage, it's essential to remember they may not cover every potential hazard involved with your project - which is where builders' risk policy extensions come in handy. But What Are Builder’s Risk Policy Extensions and why they are necessary?

Why Are Builder's Risk Policy Extensions Necessary?

Builder's risk policy extensions are tailored specifically for every construction project and provide comprehensive protection from risks throughout its duration, giving greater peace of mind during its execution. By adding extensions, these policies provide complete peace of mind at each stage in development and completion.

Standard builder's risk policies typically cover:

• Covered Perils: As detailed in your policy, these losses include fire, lightning strikes, theft, vandalism, and windstorm damage.
• Materials and equipment: The policy typically provides coverage for materials and equipment used in construction that is damaged or lost due to covered perils, while debris removal costs typically are also included as covered losses occur on construction sites.
• Loss of Use: If an insured peril renders an entire structure unusable, an umbrella policy can provide coverage for additional living costs or rental income that are lost as a result.

Common Builder's Risk Policy Extensions

While a standard policy provides the framework, additional builder's risk policy extensions can be added as needed for individual project needs. Here are some common examples:

1. Increased Value Coverage: This extension extends the coverage limit beyond what would typically be provided through standard policy limits for completed structures.
2. Extra expense coverage: This extension covers additional costs related to covered perils, such as renting temporary housing or speeding up construction to minimize delays.
3. Pollution cleanup and removal: This extension covers costs related to cleaning up pollution released due to covered perils.
4. Flood and earthquake coverage: Most standard policies do not offer coverage against flooding and earthquake damage, however, these extensions may provide added coverage against these specific perils. 
5. Theft of materials coverage: This add-on offers wider protection for theft from construction sites than just theft of materials from them directly.
6. Vandalism and malicious acts: This extension covers damage arising from vandalism or acts of vandalism that occur outside regular construction hours, even if these incidents take place within normal construction hours.
7. Site Pollution: This extension covers costs incurred due to pollution caused by the construction itself rather than from covered perils alone.

Read more: Builder’s Risk Insurance for Homeowners!

Choosing Builder's Risk Policy Extensions

Making an informed decision regarding builder's risk policy extensions requires carefully considering your project's unique risks and exposures. Here are a few things that might influence this choice:

• The complexity of your project
• The value of your project
• The location of your project
• Your risk tolerance

Utilizing Builder's Risk Policy Extensions with SummitCover Can Be Gainful for Builders

SummitCover provides comprehensive and customized builder's risk insurance across Canada. Through offering various builder's risk policy extensions, we enable our clients to:

• Reduce financial risks: By expanding coverage beyond standard policies, you can minimize the financial consequences of unexpected events affecting your project, helping protect its budget from unexpected costs.
• Increase Peace of Mind: With comprehensive insurance covering any range of risks to your project in place, it can allow for increased peace of mind during construction. This allows you to focus on its completion more freely without worrying about its completion.
• Adhere to contractual obligations: Certain contracts might stipulate specific types of coverage requirements, so builder's risk policy extensions can help ensure you fulfill them.
• Demonstrate Professionalism: Establishing a comprehensive insurance plan with relevant extensions shows project stakeholders - clients, subcontractors, and investors alike - your commitment to professionalism.

How SummitCover Can Assist You?

SummitCover is Canada's go-to provider for Builders Risk Insurance, providing tailored coverage options and exceptional customer experiences. We recognize the specialized nature of construction projects, so our mission is to offer solutions that fit them seamlessly - be they tailored solutions that match individual project specifications or general ones that consider all factors.

SummitCover offers assistance for builder's risk policy extensions through:

• Experienced Advice
• Competitive quotes
• Streamlined process

Final Thoughts

Want to gain more insight into builder's risk policy extensions and SummitCover can assist with procuring appropriate coverage for your construction project? Get in touch with us right now for a complimentary quote, our team is standing by with answers and will guide you through each step to provide peace of mind while on this construction journey!