Colorado Builders Risk: Your Guide

New construction or renovation…then Barbee Jackson Insurance has you covered! We work with the leading insurance companies to find our clients the coverage they need at the best price. 

As an independent insurance agency we work with thousands of clients across the United States from General Contractors to Primary Builders to help find Builders Risk Insurance.

Barbee Jackson Insurance has a team of dedicated insurance agents that write thousands of builders risk policies each year.
Call (850) 389-2001 today to get started.

Types of Projects we can Insure

• Residential Homes
• Commercial Properties
• Track Homes
• Remodels
• Commercial Build Outs
• Developments
• Airplane Hangers
• And much, much more

What to know about Colorado Builders Risk Insurance

Structure - The primary coverage option on a Builders Risk policy is the structure. You want to safeguard the structure from financial loss in the event something happens during the course of construction. The insurance provides Property Damage Insurance much like a homeowners insurance policy works. The amount of coverage you need will be the total cost of the project (material and labor) including soft costs such as building permits and licenses.

In the event that there are multiple structures on the project each structure will have its own coverage limit to ensure adequate coverage for the construction project.

Theft - Building material theft is a growing concern among most building owners and developers. With the rise of building material costs comes increased chances that a loss can occur from theft. Insurance companies will reimburse you from stolen building material minus a deductible.

It has become industry standard that insurance companies will ask how material on site will be stored. For example, some insurance companies will require HVAC systems to be installed the same day of arrival. Other insurance companies on large commercial properties will require fencing and lighting to help prevent theft of material.

General Liability Insurance - One of the most common questions we receive is there liability coverage in the event someone is injured on the premises? The answer is No. Builders Risk Insurance does not include liability coverage. We can write a separate policy referred to as a Premise Liability Insurance to cover injuries that occur on the project site.

It is important to realize that this covers outside people that may wander onto the construction site. It doesn’t cover construction workers that are injured on the property. They should have a workers compensation policy to cover workplace injuries.

What we need to get you a Quote

• Project Address
• Type of Project (New Construction or Remodel)
• Description of Project  (single-family residence, commercial building etc.)
• Start Date
• General Contractor Name and License Number
• Total Project Cost (including labor and materials)
• Square Footage
• Number of Stories
• Construction Type (Frame, Steel, Block etc.)

30% Rule

Most insurance companies have a 30% rule before they will insure the structure. That means if the project is more than 30% complete the insurance companies will not offer coverage. The ideal time to purchase a policy is when the slab pour is complete and before any walls are erected. 

Can’t you just say that 30% of the home is not complete to avoid the rule? You can, BUT all the insurance companies now do inspections to verify the project and the amount complete. If found that the structure is over 30% complete the insurance company will cancel the policy and keep the application fees.

General Contractor or Owner?

Another commonly asked question by owners is “Who should the policy be named under, the owner or the builder?” or “My General Contractor bought the policy, so I’m covered right?”

The policy is allowed to be under the builders name or the owners, but we always suggest that the policy be written in the name of the owner. Why?

Too many times we have had phone calls that the General Contractor was either let go or they just disappeared before the project is done. And if the policy is in the name of the builder the owner will have to take out a new policy. 

In addition what if the project is over 30% complete and according to the rule most insurance companies will not insure a structure over 30% complete.

Our advice…Property Owner is the one that purchases the policy and is the named insured.

Why Barbee Jackson Insurance?

If you have read this entire content piece then you should know that we are the Experts in Builders Risk Insurance. We work with thousands of builders and owners to get them the peace of mind that they have the right coverage at the best price. Join thousands that call us each year to help them with their Builders Risk Insurance (850) 389-2001