Hello! This is not intended to come off as a stupid question but is it required/necessary to get builders risk insurance? I own a small commercial building outright and we’re replacing the flooring, framing/sheet-rocking some new walls, installing new wiring, having some new exterior doors installed, and having a mason repair a few bricks on the front. My husband is a master electrician and GC and his father is also a GC and they’ll be doing all of the work aside from fixing the bricks, which the mason said is apparently a one day job. My insurance agent quoted us $7k for a 12 month policy which seems absurd as most of this work seems minor but maybe I’m wrong to think that. I’m not too sure. Thanks for any insights!! Located in MA
Is builder’s risk insurance needed?
byu/GoodAny9239 inInsurance
Posted by GoodAny9239
2 Comments
There’s a lot missing here, is the building a new purchase? Is there a loan on the building? Is your husbands company insured? Is he insured as a GC or an electrician? Hard hammer vs soft hammer? Are the subs hes using insured? Insurance can be very intricate when you get into construction. I’m not sure how MA is but Everyone is Sue happy in most major cities. 7k is a drop in the bucket compared to what you can lose. I would take the advice of an experienced insurance broker on this one.
Usually minor renovations can be covered through an existing package policy without needing a separate builders risk. I’d check with whoever insures your property currently to see if they can accommodate this work. It just depends on the coverage form of your current coverage