Reader’s Question

Is there a commercial insurance for a constructed building? I’m thinking what if it will crumble down while being constructed? I’m a new to construction and I’m kind of wondering these things.

Dave

Greensboro, NC

Hello Dave

First of all, I want to congratulate you in your new profession. You can definitely find answers here.

Commercial insurance varies in different types of business. Insurance companies offering commercial insurance usually have wide range of products just as there are different types of business. As for your question, yes, there is indeed an insurance for building which is even under construction. It is a commercial insurance that contractors usually buy if they think that the constructed building is faced with possible perils. The name of the commercial insurance for constructed building is Builder’s Risk Policy.

The commercial insurance under Builder’s Risk Policy protects the constructed building against losses on natural disasters. The Builder’s Risk Insurance entails evaluation of the pre-constructed building. Usually this is appropriate for large property projects as there are great losses when the pre-constructed building is destroyed by natural disaster. Nevertheless, conversion or extension of buildings can also get this type of commercial insurance.

You can find Builder’s Risk insurance among many insurance companies offering non-life or commercial insurance can be found in insurance company. To get the cheapest rate for this commercial insurance, be sure to shop around and get various quotes where you can compare the rates.