Builder's risk insurance is a specialized form of property insurance designed specifically for buildings under construction. Homeowners often assume that all construction work is covered by the builder's policies or their existing building and home contents insurance policies. However, this is not always the case. Structural work can cancel existing buildings and content policies, as can property that remains vacant for more than 30 days.
Having the details of coverage clearly outlined in both the contract and the insurance policy will make the process from claim to recovery much simpler in the event of a covered incident. In short, either party may be responsible for purchasing the builder's hazard insurance policy, but the terms of the contract must specify who buys the policy, what it covers, and who is included in the policy. Builder's risk insurance does not cover liability for accidents and injuries during construction; liability insurance will be needed in addition to the builder's risk. Inland marine insurance is intended to cover property anywhere, whether it is in the possession of its owner, in transit, or in the custody of another person.
Coverage against builders' risks is essential to protect University property and, together with the main property insurance program, provides continuity of coverage throughout the development process, from the inauguration of new buildings to those that undergo major renovations, and the transition of the site to permanent coverage after construction activities are completed. AIG has more than a century of experience in the insurance industry and decades of experience specifically covering risks for builders. In the event of a loss, having quality information available to accurately establish insurable financial costs that Harvard will incur as a result will help ensure a successful negotiation with the builder's risk insurer. A builder's risk policy generally covers a structure under construction and any materials used to build it (anything that becomes a permanent part of the structure), whether on site or in transit.
To find out how much a Chubb Builders risk policy will cost, you can visit their website to find information about agents and brokers in your area who can tell you more about costs based on specific project details. Some insurers classify their risk policies for builders as a form of inland marine insurance, even though the insured property (the building) remains in one place. OCIPs combine workers' compensation, construction risk, general commercial liability, excessive liability, and other insurance policies into a single program purchased by the landlord and configured for contractors to enroll. In addition to types of property covered, builders' risk policies will always specify “causes of loss” covered and identify specific events that qualify as covered.
AIG offers a variety of policy options for insurance against construction risks with comprehensive coverage and extensions for items such as debris removal, additional expenses, delay in completion and adjacent property.