Why Renovations Require a Rethink of Your Builder’s Risk Policy
Renovating your home or commercial property in North Carolina? Before the first nail is hammered, it’s crucial to reassess your Builder’s Risk Insurance policy. Many property owners overlook the need to update their coverage, leaving them exposed to potential financial risks. Understanding how renovations impact your insurance can help safeguard your investment and prevent costly surprises.
What Is Builder’s Risk Insurance and Why Does It Matter?
Builder’s Risk Insurance is a specialized policy designed to cover property under construction or renovation. This coverage protects against risks such as fire, vandalism, theft, and weather-related damage that could occur while work is in progress.
In North Carolina, renovations—whether for a single-family home in Charlotte or a commercial property in Raleigh—introduce new risks that may not be covered under a standard homeowner’s or commercial property policy. That’s why reviewing and updating your Builder’s Risk Insurance is essential before any work begins.
How Renovations Change Your Insurance Needs
Many property owners assume that their existing policy automatically covers renovations, but that’s not always the case. Here’s why you may need to adjust your Builder’s Risk policy:
- Increased Property Value: Renovations add value to your property, which means your current policy limits may no longer be sufficient.
- Expanded Risks: Construction materials, tools, and unfinished work are more vulnerable to theft, fire, and weather damage.
- Contractor and Liability Coverage: If contractors or subcontractors are working on-site, your liability exposure increases. Your policy should reflect this added risk.
Key Coverages to Review in Your Builder’s Risk Policy
When updating your Builder’s Risk Insurance in North Carolina, ensure your policy includes:
- Property Damage Protection: Covers damage to the structure, building materials, and fixtures before project completion.
- Liability Insurance: Provides protection against injuries or property damage caused during renovations.
- Equipment and Material Coverage: Protects construction tools, supplies, and materials stored on-site.
- Soft Costs Coverage: Reimburses expenses like legal fees, permit costs, or interest on construction loans if a project is delayed due to a covered loss.
When Should You Update Your Builder’s Risk Insurance?
The best time to update your policy is before any work begins. If you’re planning home renovations in Raleigh, Charlotte, Greensboro, or anywhere in North Carolina, contact your local insurance agency to review your coverage options.
Additionally, if your project timeline extends or you make design changes that increase costs, updating your Builder’s Risk Insurance mid-project may also be necessary.
Protect Your Renovation Investment with the Right Coverage
Every renovation project presents unique risks. Ensuring you have the proper Builder’s Risk Insurance can prevent costly setbacks and financial losses. Our team specializes in Builder’s Risk policies for North Carolina homeowners and businesses. Call us today to review your coverage and get a customized policy that fits your renovation needs.
Don’t wait until an accident happens—secure your renovation investment now. Contact us today for a free insurance consultation!
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