913-225-8203

What is Builder's Risk Insurance in Overland Park and Olathe, KS?

Existing buildings are exposed to a wide variety of threats—fire, flooding, and vandalism are just a few of the ways building structures can be harmed. However, buildings under construction aren't ready to face risks that completed buildings can withstand. There's also the chance of an accident during the construction phase, like materials being destroyed or installed incorrectly. A proper risk analysis from our Aspire Insurance Agency agents can help reduce the number of threats a new construction faces, and our agents can help reveal additional threats that may need to be covered by additional policies.

Builder's risk insurance is a policy designed to mitigate the chance of loss and protect you in the event that damage is done to the building. This policy is most commonly purchased by landowners and those funding the project, although some contractors purchase it in order to have more control over how each job is insured.

This policy is mainly designed for new construction, rather than changes and improvements to existing buildings. That form of construction is usually covered by property insurance and does not need any additional coverage, although it's best to talk with an agent before starting any particularly large project just to be absolutely sure it's covered.

What Does Builder's Risk Insurance Cover? What Does It Not Cover?

Builder's Risk Insurance generally covers the owner, the lending institution, the contractor(s) performing the work, and other related parties. In addition to providing coverage for damage to the building itself, most plans also cover temporary constructs (like scaffolding), materials, and equipment being used (whether it's currently on-site or off-site). The majority of policies are written on an all-perils basis, which means that reimbursements are available for any losses except those specifically excluded.

Common exclusions from this coverage include (but are not limited to):

  • The value of the land itself
  • Employee theft
  • Damages beyond the estimated value of the construction
  • Any losses brought by law or ordinance changes
  • Damage from earthquakes
  • Losses from war, nuclear hazards, or actions by civil authority

As you can see, most of the exclusions are not likely to occur during the course of a normal construction project. The value of the land is the only one likely to change as new work is done, and you will likely need to account for any improvements or losses the next time your company prepares taxes.

Builder's Risk Insurance Policy Lengths

Most policies last until the building is no longer under construction. The exact point at which this occurs can vary—it may be when certain parts of the structure are done (but finishing work, like painting, has not been completed), up to the day it opens for business, or when the contract with the construction company ends. If you're worried about interim risks—like the building being damaged between when construction finishes and when it opens for business—talk to one of our agents and ask about extending your coverage.

 

1. "Threat/Vulnerability Assessments and Risk Analysis." WBDG. Accessed April 20, 2016. https://www.wbdg.org/resources/riskanalysis.php.

2. "Who Should Buy Builder’s Risk Insurance?" BuildingAdvisor. Accessed April 20, 2016. http://buildingadvisor.com/who-should-buy-builders-risk-insurance/.

3. "How Do I Account for Land improvements?" Questions & Answers - AccountingTools. Accessed April 20, 2016. http://www.accountingtools.com/questions-and-answers/how-do-i-account-for-land-improvements.html.

Main Office

6300 W 143rd St, STE 120

Overland Park, KS 66223

Main office: 913-225-8203
Toll free: 866-702-1020
Fax: 913-945-1980

Office Hours:

Mon: 8:30 AM - 5:30 PM
Tues: 8:30 AM - 5:30 PM
Wed: 8:30 AM - 5:30 PM
Thurs: 8:30 AM - 5:30 PM
Fri: 8:30 AM - 5:30 PM
Sat: By Appointment
Sun: By Appointment

Satellite Office

13095 S Mur-Len Rd, STE 100

Olathe, KS 66062

Main office: 913-225-8437
Toll free: 866-702-1020
Fax: 913-945-1980

Office Hours:

Mon: 8:30 AM - 5:30 PM
Tues: 8:30 AM - 5:30 PM
Wed: 8:30 AM - 5:30 PM
Thurs: 8:30 AM - 5:30 PM
Fri: 8:30 AM - 5:30 PM
Sat: By Appointment
Sun: By Appointment

Satellite Office

705 8th St

Baldwin City, KS 66066

Main office: 913-225-8437
Toll free: 866-702-1020
Fax: 913-945-1980

Office Hours:

Mon: 8:30 AM - 5:30 PM
Tues: 8:30 AM - 5:30 PM
Wed: 8:30 AM - 5:30 PM
Thurs: 8:30 AM - 5:30 PM
Fri: 8:30 AM - 5:30 PM
Sat: By Appointment
Sun: By Appointment

Our Providers

Testimonials

I have been a client of Aspire Insurance Agency for several years now. I have found them to be nothing but helpful and wonderful. They search out the best prices and coverages for any needs. Last summer, a storm toppled a tree onto my fence and Marty was out at my house within 30 minutes. When my son just got engaged, Marty gave us the best advice on getting the ring insured quickly and easily. We have homeowners, multi-car insurance, jewelry, and renters insurance for houses at college. I would highly recommend Aspire Insurance Agency to anyone wanting the best coverage and pricing, plus friendly and helpful advice from Marty and his staff.
Kala - Overland Park, KS
After being with an insurance company for over 20 years, we saw our rates and premiums increase and increase. Marty was able to find us an equal if not better plan covering our cars and home. We are saving over $700/yr. Aspire Insurance Agency is the only agency I would consider! Thanks, Marty!
John and Kathleen - Overland Park, KS
We wanted to update our coverage portfolio and wanted a hometown agency. Everyone at Aspire was helpful and guided us through the process. Thank you.
Bob and Karen - Overland Park, KS