Builders Risk Insurance New York
During the course of construction of residential and commercial properties, contractors, whether constructing large or small projects, have different potentials of hazard. Therefore, contractors throughout New York need a professional insurance agent to help assess their needs. NY Insurance Hub has been helping many contractors to evaluate these liability exposures and insurance needs.
Builder’s risk insurance helps protect projects from property damage due to various perils such as fire, lightning, hail, explosions, theft, and vandalism. A basic policy helps to cover structures as they are being built while also protecting materials and supplies. There are certain perils that are usually excluded from protections such as earthquake, flood, wind, and beach zones, but you may be able to get endorsements to help protect properties and structures vulnerable to these types of exposures.
Five Factors That Impact NY Builders Risk Insurance Premiums
- Location. The geographic location of the project can play a key role in the cost of a policy. Policies written in areas that are coastal or prone to natural disasters like tornadoes, wildfires, and hailstorms will be more expensive than a job site situated inland with little chance of natural disasters.
- Job Type. Is the project classified as new construction or remodeling? Remodeling jobs create a higher exposure to loss for the insurance company because there’s an existing structure in place, for this reason, premiums are typically higher than that of new construction on a dollar per dollar of protection basis.
- Type of Construction. Generally, the higher the quality of the construction, the better the premium, because it can better withstand perils that can cause a loss. For example, the use of fire resistive materials will rate more favorably than the use of wood, which presents a greater chance of a partial or total loss if a fire occurs.
- Policy Add-On Coverages. After a risk assessment or due to contract requirements, the client may choose to add optional endorsements to mitigate their own exposure. Of course, these added coverage items will add to the premium and are up to the client to determine whether to chance being exposed, to self-insure so to speak. Optional endorsements commonly used are business income and extra expense, material in transit, earthquake damage, contract penalties, flood damage, or increased costs.
- Insurer Added Fees and Taxes. Non-admitted carriers can add policy fees and surplus lines taxes to the bottom-line cost, where Admitted carriers cannot. These added fees and taxes are often quite substantial and can result in a significantly higher cost to the client as opposed to the use of an admitted carrier. It’s important to know what type of insurer you are getting a quote from.
Frequently Asked Questions (FAQ) for Residential New Construction
Frequently Asked Questions (FAQ) for Commercial New Construction
Contact NY Insurance Hub today to speak with one of our trusted agents about your Builders Risk Insurance options & answer any questions you may have and provide you with a quote.