What is Builder’s Risk insurance?

Builder’s Risk covers owners and builders from damages to a structure while it is under construction. If a disaster occurs, the insurance company compensates the policy holder for covered damages to materials, permanent fixtures or the building itself.

This insurance can protect the builder from:

  • Fire
  • The elements of nature (windstorm, hail, lightning etc.)
  • Broken water line
  • Vandalism and theft
  • And many other hazards, depending on your policy

What makes ISG’s Builder’s Risk insurance special?

Our builder’s risk policy offers you enhancements above and beyond a typical policy. Coverage can be extended to include wind for wind-prone areas, earthquake and sinkhole, flood and water damage, model home contents, jobsite trailers, permission to occupy and soft costs. Our policy also allows you to increase limits for fungi and dry rot, trees and shrubs, and transit coverage. It’s easy to find a policy that meets your exact needs. You can pair coverage enhancements with ISG’s Modified Blanket policy structure for the most cost effective coverage available.

What types of Builder’s Risk insurance policies are available?

You have several options depending on your preference.

Standard Blanket

With this type of policy, you don’t have to worry about reporting the builder’s activity and paying premium each and every month. You simply estimate the number of homes that will be built, pay a deposit premium at inception and then true up based on actual homes built at expiration.

Modified Blanket

Unique to ISG, this special policy saves larger builders a substantial amount of money. Similar to a standard blanket, you don’t have to report the builder’s activity and pay every month. You simply estimate the number of homes that will be built, pay the deposit premium, and then at the end of the policy period, true up based on actual homes built. The superior difference with the modified blanket program is that premium is charged only for the number of months it takes to build and sell the structure. So, since a standard blanket policy applies a 12-month rate to all homes, a modified blanket is going to cost you less if you finish early.

New Starts

This type of policy gives the builder the flexibility to report and pay premium as homes are started. This program structure helps to more closely align the timing of insurance costs with revenue generated from each home.

Single-Shot

This policy is designed for the builder who just needs one home covered by a particular policy.

To learn more about Builder’s Risk insurance, check out the extra materials in the knowledgebase.

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