The primary means to insure for property exposure claims during construction is through Builder’s Risk insurance. Builder’s Risk insurance is a type of insurance coverage that is active while projects are under construction, renovation, remodel or repair. It is best to secure Builder’s Risk insurance prior to starting repairs or construction and always prior to delivery of product (logs). In cases where there is a construction loan, Builder’s Risk insurance is normally required before the closing date. Builder’s Risk insurance to a large extent excludes coverage for claims of defective work or design.
Builder’s Risk insurance can be purchased by and written in the homeowner’s name, the builder’s name or the builder’s DBA. The dwelling is insured for the expected value upon completion. It is very important to keep thorough records and save receipts for expenditures for materials and labor. Builder’s Risk policies are normally written for 12 months.
Fred Roberts, Roberts & Associates, writes log and timber home Builder’s Risk insurance across the United States. The company is an independent insurance agency representing numerous “A” rated state and national insurance carriers. Insurance coverages may vary by state.
Call 877-378-2377 or visit
www.loghomesinsurance.com for assistance.
Tips from Fred Roberts:
- Always have builders risk insurance in place prior to delivery of log home construction materials. Unlike conventional home construction, where materials are delivered in phases over the period of construction, your log home materials will be delivered all at one time.
- Always have the policy written in your name (owner of log home materials). In the event of a loss, the claim check will be made payable to the Named Insured on the policy. If you would like, or if the builder requires, you can include the builder’s name on the policy as an Additional Insured, in which case any claim check would be payable to both parties.
- Be prepared to change your Builders Risk Insurance to dwelling (homeowners) insurance once construction is complete. Normal Builders Risk Insurance does not include personal property/contents so don’t move any personal belongings to the location until the correct insurance coverage is in place.
Fred Roberts, Log Home Dweller / Insurance Agent, froberts@loghomesinsurance.com
