Course of Construction / Builder’s Risk Insurance
A Course of Construction Insurance policy, or “Builder’s Risk” policy, is designed to provide coverage for buildings while under construction. It covers the value of the property being constructed until it’s either moved into, or ready for occupancy, the Contractor’s value in materials at the job site before being installed and materials in transit intended for the job.
The policy may be written to cover the whole structure for new construction or for rehab projects. It can also be used to cover a specific project such as a room addition, a kitchen remodel or a new deck.
What’s Typically Covered
A Course of Construction, (Builder’s Risk) policy is a form of Inland Marine insurance. The basic perils such as fire, wind storm, lightning, hail, theft and vandalism are common. Limited coverage may be provided for structural collapse during construction.
Standard Exclusions
Earth movement, employee theft, “mysterious disappearance,” (loss without any proof), water damage, weather damage to property in the open, war, government action, contract penalty, voluntary parting and mechanical breakdown, aircraft, watercraft or automobiles.
Liability is Not Covered
Builders’ Risk insurance does not include coverage for Bodily Injury or Property Damage of others. Ask your Broker about how your General Liability insurance could protect you during construction.
What’s Typically Not Covered
Debris removal, mold, terrorism, and damage by insects or vermin, damage resulting from faulty design, planning, workmanship and materials, plants, trees or shrubs.
Coverage Options
We cover vacant properties. Unlike other companies, we offer a policy that is renewable for up to two years, with pro-rated cancellation. That means you won’t get stuck paying for a longer term than you need. Vacant homes that are eligible include:
- Homes vacant for less than 24 months
- Homes for sale
- Homes in the name of an estate
- Homes under renovation
Property Coverage
Property insurance covers physical loss to your home. You may also purchase coverage for your other detached structures or personal property. While no insurance policy covers everything, your policy should cover a wide range of possible damages or causes of loss.
- Named peril coverage - Covers the perils (causes of damage such as fire, wind, hail, etc.) which are specifically named in your policy.
- Vandalism and Malicious Mischief Coverage
Liability Coverage
Liability insurance covers you if you’re found legally responsible for a covered injury or property damage to someone who doesn’t live in your home. It compensates injured persons for their medical bills, lost wages, pain and suffering and property damage, and if the coverage applies, legal counsel is furnished if you’re sued.
Settlement Methods
Your settlement method depends on which Foremost policy you choose and whether or not you purchase any optional endorsements.
- Actual Cash Value. Our base policy has an Actual Cash Value settlement. An ACV settlement is the cost to replace or repair you damaged property, with a deduction to reflect the age and condition of the damaged property.
- Agreed Loss Settlement. An Agreed Loss Settlement means that in the case of a covered total loss to the home, your settlement will be the Amount of Insurance listed on your Declarations Page, with no deductible on the coverage for your home, unless stated elsewhere in the policy.
