Builders Risk Insurance

Builders risk insurance is a specialized policy that protects buildings and structures under construction, covering damage from risks like fire, theft, vandalism, and weather events.

It typically covers:

• Damage to the structure under construction.
• Materials, supplies, and equipment at the site.
• Losses due to fire, theft, vandalism, windstorms, and more.
  Additional coverage may include soft costs, such as permits and legal fees, and tools or equipment.

Builders risk policies generally exclude:

• Employee theft.
• Normal wear and tear.
• Workmanship defects.
• Damage caused by earthquakes or floods unless specifically added to the policy.

The policy duration typically matches the construction project timeline, ending upon completion or when the property is ready for occupancy. Extensions can be added if the project is delayed

Costs vary based on factors like project size, location, and coverage limits. Premiums typically range from 1-5% of the total construction budget.

Yes, if the renovations are significant and involve structural changes, builders risk insurance can protect your investment and materials during construction.

While not legally required, many lenders and contractors mandate it to ensure coverage during construction.

Yes, builders risk policies often include coverage for subcontractors’ materials and work. However, subcontractors should also carry their own liability insurance.

Assess your project’s specific risks, coverage needs, and budget. Work with us insurance broker to customize a policy that protects against the unique challenges of building in Montana, including weather and natural risks.

Yes, they are generally tax-deductible as ordinary and necessary business expenses. This deduction can reduce your taxable income, leading to potential tax savings. To qualify, the vehicle must be used for business purposes, and accurate records of expenses and usage should be maintained.