If you’re a commercial property owner with an upcoming construction project or a contractor about to start a new job, course of construction insurance might be for you. But before you purchase a brand new insurance policy, you might be wondering how much it will cost you. The cost of course of construction (otherwise known as builders risk insurance) is detailed below.
Course of construction insurance defined
Course of construction insurance, also known as builders risk insurance, is a type of commercial property insurance that covers a building under construction, including when it is being renovated, repaired or built.
What does course of construction insurance cover?
To understand how much course of construction insurance costs, you must first understand the coverage it provides. While exact coverage varies from policy to policy, the purpose of builders risk insurance is to protect the structure being constructed and any building materials on-site from damages, such as fire, theft, and other weather-related incidents. Depending on the coverage you choose, your course of construction policy may also cover costs associated with rebuilding, expediting supplies, additional design costs, tools and materials in transit, sewer backup, professional fees, and more.
Course of construction insurance vs. builders risk insurance
Both course of construction insurance and builders risk insurance refer to the same type of insurance. Therefore, the two terms can be used interchangeably.
Who pays for builders risk insurance?
Builders risk insurance is typically purchased by the contractor, subcontractor, property owner, or property developer. Who purchases it and how it’s paid for is determined on a project by project basis.
How do insurance companies calculate builders risk premiums?
Insurance companies use different methods to calculate insurance premiums. However, you can generally expect an insurer to consider the following factors when determining your course of construction insurance rate:
- The length of time the project will take to complete
- The total cost of the project
- The location of the project
- The total area of the construction site
- The amount of coverage you wish to purchase
- The amount of experience and expertise those involved in the project have
- The quality of the building materials used in the construction of the project
- Other logistical issues, such as where the construction materials are being stored
The cost of builders risk insurance
Ultimately, since the cost of builders risk insurance is dependent on the size and scope of the project, it varies greatly. For this reason, the best way to find out how much it will cost you is to contact a reputable commercial insurance brokerage like ALIGNED. We will take the time to learn the details of the project in order to provide you with an accurate and competitive course of construction insurance quote.
ALIGN your construction project with course of construction insurance
Want to learn more about how the cost of builders risk insurance is calculated? Contact ALIGNED today. Any one of our expert brokers would be pleased to explain the average cost of course of construction insurance and provide you with a quote.
Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.
