Builders Risk and Vacant Dwelling
Certain remodeling projects, and residential and commercial construction jobs require specialized insurance policies.
Empty Buildings Or Buildings Under Construction Or Renovation Present Some Unique Concerns.
An empty home or other building can be a magnet for vandalism, and if someone isn’t living there, a small leak could easily become a big flood. Empty buildings are just as likely to be affected by fire, wind, or lightning. Standard homeowner’s or commercial insurance policies may not cover you if the insured building is vacant.
Here are two types of policies that might apply to your situation:
A vacant dwelling policy covers your home if it is left vacant for a certain length of time, usually at least 60 days.
A Builder’s Risk policy covers a building under construction. It can cover just the building itself, or also the materials at the job site for use in construction of the building. Coverage limits should be for the completed value of the structure, less the value of the land. The policy can be written for as short a term as one month all the way up to 6 months or a year. The policy can also be extended if construction is not finished in time, or be cancelled if the building is finished before the end of the policy term.
Let’s look at some scenarios in which you should have a vacant dwelling or builder’s risk policy:
Vacant dwelling
- You’ve bought a home, but for some reason you can’t move in yet—you haven’t sold your old home, or, conversely, you’ve moved to your new home and need an insurance policy to cover your previous home until it sells.
- You own a commercial building or rental property that currently has no tenant.
Builder’s risk
- You bought a home as investment, intending to have renovations done before selling it, and it will remain vacant until you sell.
- You’re building a home from the ground up.
- You bought a bank-owned home you’re renovating before you move in.
Stuber’s helpful agents will review several policy choices, coverage limits, deductibles and pricing, and will come up with the best option for you.