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Builders Risk Insurance

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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

  1. 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.

  2. 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. 

  3. 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. 

  4. 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. 

  5. 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.
Depending on your specific scenario, we look to zero-in on the best builders risk insurance in New York that fulfills your needs as well as your budget.  We service clients in the Albany, Schenectady, Troy, Latham, Clifton Park, Saratoga Springs, Cohoes, Watervliet areas as well as the entire state of New York. Each one of our clients is given a dedicated expert to work together to proficiently address all your concerns.

Frequently Asked Questions (FAQ) for Residential New Construction

Total value is determined as the total of all costs related with the building and design of the property to be insured but excludes the cost of land. Items such as materials, labor, and overhead are used in the calculation.
Yes. This can be done using a residential reporting form which aids both the contractor and insurance agent to keep track of coverage for multiple new jobs under one policy. There are also polices for single structure builders risk policies laid out to protect one specific structure.
Yes. This is typically done using a change order endorsement to increase limits in specified percentage increments.
Yes. That is for an additional 12 months and can be held even while the home is up for sale. If there is need for a third year, the client can purchase a vacant home option.

Frequently Asked Questions (FAQ) for Commercial New Construction

Common commercial projects include apartment and condominium structures over 4-units along with office buildings, stores, strip malls and the like. Also eligible are municipal properties, warehouses, stadiums, institutional properties and many more.
The client can be the owner, contractor, retailer, municipality or really anyone with an insurable interest.
Yes. Just as with residential policies can be purchased under a reporting form option for multiple properties or under a single policy form.
Commercial builders risk policies in NY normally exclude flood protection but you may be able to add an endorsement for it. Underwriter approval with be required in most instances and may not be extended to the full limit of the policy.

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.