Choice Insurance Agency
Builder’s Risk Insurance in Massachusetts
Offering customized insurance solutions in Massachusetts and beyond.
What is builder’s risk insurance?
Builder’s risk insurance is a type of commercial insurance that helps protect buildings and structures under construction. It covers damage to the construction site, materials, and equipment caused by events such as fire, theft, vandalism, and certain weather-related incidents. This policy is specifically designed for contractors, property owners, developers, and builders who are managing construction or renovation projects. It ensures that the financial investment in the project is protected in case of unexpected damage or loss during the building process.
Why is builder’s risk insurance important for construction projects in Massachusetts?
Builder’s risk insurance is important for construction projects in Massachusetts because it helps protect your investment from unforeseen risks that could cause costly delays or financial loss. Construction projects in Massachusetts, like anywhere else, are vulnerable to various hazards, including severe weather, fire, theft, and accidents. With builder’s risk insurance, you may avoid the financial burden of repairing or replacing damaged property, materials, or equipment, ensuring that your project stays on track.
Moreover, many lending institutions and government contracts require builders or property owners to have builder’s risk insurance in place before they provide funding or approve permits. In Massachusetts, this requirement is common, especially for large-scale construction projects.
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Moved all my personal lines of insurance over to Choice. They found me a set of policies that saved me over $1000/year. Then, Julie took care of my commercial line, jumped through so many hoops and got me a policy for my business at an amazing rate.
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Choice insurance has been providing insurance coverage to our commercial real estate business for over 7 years and the service has been tremendous. Peter has always responded quickly and with incredibly aggressive pricing; and with a perspective to assure that we are fully covered for all potential issues without unnecessary coverage and fees. There is such a comfort when working with Peter and his company that our best interest is their top priority.
I have been a happy customer of Choice Insurance for 12+ years. Peter and the team have been fantastic — always professional and knowledgeable about supporting my business insurance needs as well as our personal, home, car, and condo insurance needs. Peter has helped us with insurance questions related to buying and selling homes, a flood insurance claim, a tree that almost fell on our house and destroyed our fence, and a car accident. Recently, Peter noticed that our condo insurance (inherited from the prior owner) was severely inadequate. He helped us switch to a much better policy within less than a day. And, thank goodness he did. A couple weeks later, I smelled gas outside our home. It was a gas leak that National Grid fixed right away. But, I slept more soundly that night knowing that if the worst had happened, we would be fully covered thanks to Peter! I can’t recommend Choice enough!
This is our third policy with Peter, he’s awesome!! We started with a policy for a commercial space and added a home insurance and auto policy because of the quality of service that we received.
We highly recommend Choice Insurance Agency for competitive pricing and transparency. Want a great policy and customer service experience look no further.
Peter and his team are thorough and have a strong sense of urgency for all matters pertaining to our account. Each time we reach out for assistance, our expectations are exceeded. I would recommend his team to anyone.
I switched to Choice 10 years ago and with 2 teenage drivers we interact frequently. Every time they have made the process quick and effortless. My family and I could not be more pleased.
Who needs builder’s risk insurance in Massachusetts?
Builder’s risk insurance is necessary for anyone involved in a construction project, including:
- General Contractors – They are responsible for the overall construction and need protection against potential damage or losses.
- Property Owners – Owners financing or overseeing the construction project often require builder’s risk insurance to safeguard their investment.
- Developers – Those involved in real estate development should have builder’s risk insurance to cover construction-related risks.
- Lenders or Financial Institutions – Lenders financing the project may require builder’s risk insurance as part of the loan terms to protect their interest.
Anyone with a financial stake in the construction project can benefit from this type of insurance.
What does builder’s risk insurance cover?
Builder’s risk insurance in Massachusetts typically covers a range of risks associated with the construction or renovation of buildings. It generally includes:
- Property Damage – Covers damage to the structure under construction, including materials and equipment on-site.
- Fire, Theft, or Vandalism – Protects against losses from fire, theft, or vandalism during the building process.
- Weather-Related Damage – Provides coverage for damages caused by severe weather events like windstorms or hail.
- Equipment and Materials – Insures materials and equipment both on-site and in transit to the construction location.
- Temporary Structures – Covers temporary construction elements such as scaffolding, fences, or trailers.
Can builder’s risk coverage be used for single-family home construction?
Yes, builder’s risk coverage may be used for single-family home construction. Whether you are building a new house from the ground up or working on a significant renovation, this type of insurance offers protection against risks like fire, theft, or weather damage. It covers materials, equipment, and the structure while it’s under construction, ensuring that your investment is safeguarded until the project is completed. Builder’s risk insurance is especially beneficial for homeowners, contractors, and developers involved in residential construction projects.
Is it possible to extend a builder’s risk policy if there’s a construction delay?
Yes, it is possible to extend a builder’s risk policy if there’s a construction delay, but it depends on your insurance provider and the terms of your policy. Construction delays may occur for a variety of reasons, including bad weather, supply chain issues, or unforeseen challenges. Most builder’s risk policies offer coverage for a specific duration, typically three to 12 months. If your project faces delays, you may be able to request an extension of the policy, but you should inform your insurer ahead of time.
Can subcontractors be covered under a builder’s risk insurance policy?
Subcontractors may be covered under a builder’s risk insurance policy, but this depends on how the policy is structured. A standard builder’s risk policy typically covers all parties with an insurable interest in the project, including the general contractor, property owner, and sometimes subcontractors. However, it is essential to clearly define the roles and responsibilities of subcontractors in the policy to ensure they are protected. Some policies may require subcontractors to carry their own insurance, such as general liability or worker’s compensation.
Can I get builder’s risk insurance for renovations or remodeling projects?
Yes, you may get builder’s risk insurance for renovations or remodeling projects. Builder’s risk insurance is not limited to new construction; it also applies to existing structures undergoing significant changes, such as additions, improvements, or major renovations. The policy may cover the existing structure, new materials, and work in progress, protecting you from risks like fire, vandalism, or theft during the renovation process. If you’re undertaking a large remodeling project in Massachusetts, having builder’s risk insurance ensures that your investment is protected throughout the construction period.
What factors affect the cost of builder’s risk insurance?
The cost of builder’s risk insurance in Massachusetts is influenced by several factors, including:
- Project Value – The higher the value of the construction project, the more expensive the insurance.
- Location – Risks associated with the specific Massachusetts location, such as coastal exposure or vulnerability to storms, can impact costs.
- Type of Construction – The materials used, such as wood (more flammable) versus steel (more durable), affect the premium.
- Coverage Duration – Longer construction timelines generally lead to higher insurance costs.
- Scope of Coverage – Additional coverages, like protection for tools, equipment, or temporary structures, can increase premiums.
- Deductible Amount – Higher deductibles can lower the premium, while lower deductibles will increase it.
- Contractor Experience – The track record and claims history of the contractor or builder can also affect the insurance cost.
- Project Type – Whether the project is a new build, renovation, or remodeling job can influence the cost due to different risk levels associated with each type.
How can Massachusetts contractors obtain builder’s risk insurance?
Reach out to the independent agents at Choice Insurance for a fast quote on builder’s risk insurance in Massachusetts. Our knowledgeable team is dedicated to helping you find the right coverage tailored to your specific construction project needs, whether you’re building a new home or renovating an existing structure. With our expertise, you can navigate the complexities of builder’s risk insurance and ensure that your investment is well-protected against unexpected risks.
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