5 Benefits to Having Builders Risk During Home Remodeling or Flipping

Homeowners and flippers often believe their existing home insurance policy covers all exposures. Yet, remodeling builders risk insurance can offer coverage that is more comprehensive and protect you from gaps you may not known existed. Here are just five benefits to insuring that your home remodeling project is with a builders risk insurance policy when undergoing renovations:

1. Broad EligibilityResidential remodeling insurance, like that available through the Builders Risk Plan insured by Sterling Peaks Insurance, offers coverage for a variety of projects and structure types. Whether you want to perform a basic remodel (e.g. replacing kitchen tile), a minor structural change (e.g. replacing windows or doors), or even a major structural change (e.g. replacing or removing a load-bearing wall), you can get “A” rated protection for your project. Eligible residential structures include modular construction, custom homes, tract homes and more. Perhaps most crucially, re-modelers who opt to rely on their homeowners policies typically do not get coverage for the existing structure. Many property policies have exclusions for damage to the existing structure if renovations were in progress at the time of loss, leaving those clients to bear the financial impact.
   
2. Comprehensive CoverageUnlike some permanent property policies renovating your home with a home remodeling insurance policy have the option to include or exclude the existing structure. You also have access to coverage for the theft of building materials, property in transit, damage to installed flora (e.g. trees, shrubs, lawn and plants) and newly paved surfaces, property in storage, property owned by contractors, the expense of removing debris after a covered loss, and more.
   
3. Flexible Limits and Terms
   
   Though limits and terms often vary by provider, you have access to comprehensive policies for projects valued up to $75 million with the Builders Risk Plan insured by Sterling Peaks Insurance. In addition to coverages automatically included in our basic policy, Sterling Peaks Insurance also provides you the option to protect clients’ specific project needs with additional sub-limit increases. To ensure flexibility for the unpredictable nature of renovation, Sterling Peaks Insurance offers policy terms of six, nine or 12 months, with the option to extend.
   
   
4. Additional Coverages
   
   In addition to the broad scope of coverages available through builders risk, you have access to coverage for floods, earthquakes and more. You also have the option to purchase coverage for other losses.We know contract change orders are likely during construction and you should call to endorse the policy with the increase. If you forget to call and a covered cause of loss occurred, only those materials covered by the policy were protected. That leaves you with a costly losses, and you very very unhappy. With a contract change order endorsement, those new materials can be insured if a covered cause of loss occurs and the increased project value was not reported in time. Additional coverages include: soft costs and sustainable, “green” building materials. 
   
5. Mitigate Claims Impact
   
   If you only have a homeowners policy in place, with a builders risk policy you don't have to worry that their premiums or future coverage will change in the event of a claim. Whether you encounter a windstorm, fire or even theft during your remodeling project, you can get the protection you need with a builders risk policy.

Builders risk insurance coverage not only offers a variety of benefits to you, it also provides you with peace of mind. If you are reading this there’s a good chance you are planning to renovate. In fact, according to CNBC, nearly two-thirds of consumers are planning to remodel their homes. Through builders risk, you have the opportunity to protect what matters most to you your home.
Whether you are currently planning to remodel now, or in the future, the question is will my homeowners insurance protect me during construction renovation should a claim arise? Learn the answer to this question as well as what coverages you may not even realize you need when you download Is Homeowners Insurance Enough? A Builders Risk Coverage Comparison.
This is intended as a general description of certain types of insurance and services available. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.