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What is Builder's Risk Insurance?

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 Doubleday 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.

Our Location

Doubleday Insurance Agency

110 SE Grant St, Ste 203
Ankeny, IA 50021
Main office: 515-325-8405
Toll free: 888-464-3367
Fax: 515-964-0654

Office Hours:

Mon: 8:00 AM - 5:00 PM
Tues: 8:00 AM - 5:00 PM
Wed: 8:00 AM - 5:00 PM
Thurs: 8:00 AM - 5:00 PM
Fri: 8:00 AM - 5:00 PM
Sat: By Appointment
Sun: Closed

Our Providers

Testimonials

I’ve never had a problem that Doubleday couldn’t solve.
- Terry Hager, Polk City, IA
I’d like to take this opportunity to thank you for your professional handling of both my personal and business insurance needs. Your prompt and courteous attention to my needs have been a real asset in the growth of my business. Thank you!!
- Michael Lucas
We were pleased the way you helped us on our home owners insurance. Saved us several hundred dollars. Thanks to Rose for all of her help.
- Leo & Catherine Lukes
It’s all about service. A phone call and you know whatever the problem or request, it’ll be taken care of. Saving money is only the beginning. Saving time and energy with prompt customer service is the ultimate.
- Harold Kahler, Ankeny, IA
We were very happy the way your staff took care of us when our van, parked in front of our home, was hit by a drunk driver and totaled. One of your staff came right away and had a check for it the next day. We have our home insured with you too. We are very happy with the efficiency of your staff.
- Bernice Keyes, Des Moines, IA
Eva and I couldn’t believe how well the fire claim we had went with your agency. We never had even one problem.. It was devastating but you made it so much easier for us. AND, you saved us $700 on our auto insurance too when we changed from Progressive!
- Clair Wepel, Ankeny, IA
I can’t remember how I was fortunate enough to discover Doubleday Insurance when I moved to Ankeny 8 years ago. From the beginning Chris (and later his entire family) took me under his wing like a protective older brother. Chris has handled all of my insurance needs professionally and promptly with courtesy. It’s great peace of mind to know I can call Chris (or his Dad, Lew) anytime with questions knowing I’ll be warmly greeted. I’m confident they are genuinly interested in my welfare and not just after a commission check. Thanks Doubledays!!!
- Phyllis Wininger, Ankeny, IA
Not having the best record, Doubleday Agency was able to help us in our insurance needs. Friendly, helpful and always willing to check other areas. Rose had a smile every time. Thanks for helping us in insurance. My parents always said you were the best!!!
- Rob & Tammy Pieart, Polk City, IA
We saved 71% on our home insurance with Doubleday and saved money on our auto too! We are sending them referrals of our friends and relatives so that they can save too. Since they are Independent Agents I’m sure of a very competitive rate always.
- Randy Grogan, Des Moines, IA
On the way to TN for a family vacation a deer ran out in front of us. I called and Chad answered the phone and the first thing he asked was about the family. After assuring him all was okay with us he then took over asking questions regarding the Van. He reassured me everything would be good again – and it was! Thank you for caring about my family.
- Deb Stock, Pleasant Hill, IA
Lew, we had a claim in July where we lost our roof and had a lot of damage to our home. Work has been completed and the check is on its way to us. Just wanted you to know we felt we received great service. We are so thankful to have you as a local agent that we know we can count on. It’s just reassuring to know you will take care of us and you are not an 800 number in another state with no real contact person. Thanks for all you do and for the peace of mind we have with you as our agent.
- Diane and Dave White, Maxwell, IA
I’m late in getting this note off to you, but we were extremely satisfied with our service and adjustor on the storm water backup in our basement. Great quick service from your office also.
- Shirley Ballard, Ankeny, IA
Thanks so much Lew. I will never forget your kindness to me when I had my accident in Alabama. I was so frantic, you were so calming, and I bothered you on vacation, I think you were in Spirit Lake at the time eating dinner. But you took the time to help me, and told me step by step what to do. I had never had or been in an accident before, it was so frightening for me. For you, it was just business, but for me, it was way more than that. Thanks again to your whole agency, Chris and Kim for being so helpful as well.
- Bev Shafer, Des Moines, IA
I was hit in downtown Des Moines and was clueless as to what to do. I called Chris, my agent, and he personally drove to the scene of the accident and handled everything for me. That personal touch and caring really makes it 100% worth staying with an Independent Agent. Thanks, Chris!
- Jena Skaar, Ankeny, IA
Pat Capehart recommended you to be my Insurance Agent. She was very happy with you when she needed your assistance for her claim. I'm glad she gave me a good reference. I'm glad to be your client.
- Carmen Murguia, Ankeny, IA
Chris is always available and respond to our questions/requests as soon as he can. Doubleday is like a family to us after 16 years working with you. I have all of mine insurance with you. You try to get the most competitive price.
- Lang D., customer since 1999
We really like the friendliness and knowledge of all of you. We also really like that you have our best interests in mind.
- Jerry M., customer since 2013