Tennessee Builders Risk Insurance

Are you considering building or remodeling a home or commercial property in Tennessee? If so you will need to cover the structure during the building or remodeling process and that’s where Builders Risk Insurance comes in to help provide protection against a covered loss.

Builders Risk Insurance covers the structure while in the course of construction or remodeling against losses such as tornadoes, fire, earthquakes, flood and vandalism. You can think of it as a homeowners insurance policy or commercial building policy without the contents and liability coverage.

As one the country’s largest writers of Builders Risk Insurance Barbee Jackson Insurance will shop all the leading insurance carriers to find you the right coverage at the best price. Depending on the size of the project, quotes can be done in less than 5 minutes. Larger commercial projects will require underwriting support, but can usually be turned around in less than 48 hours. Call to get started today (850) 389-2001

What Information do we need to provide a quote?

  1. Project address
  2. Mailing address
  3. Commercial or Residential
  4. Remodel or New Construction
  5. Square footage
  6. Building cost including soft costs
  7. Type of construction (i.e. frame, metal, joint masonry etc.)
  8. Number of stories

Insurance Coverage – 5 Rating Factors that Influence Builders Risk Insurance

Location is a larger determining factor of the cost of a builders risk policy. Coastal states pay a significantly higher premium because of the potential loss due to wind. Similarly, states that have a significantly higher chance of loss from wildfires will also pay a higher premium.

Inland states can expect to pay a much lower premium because the chance of loss is lower. Insurance in Tennessee is an example of a state where you can expect to pay a lower premium.

Project Type
The larger the construction project the higher the premiums will be on the insurance. Rates are determined by taking the total construction price divided by one hundred and multiplied by the rate per hundred. Every insurance company has their own rate per hundred and that’s where we help by shopping all the leading insurance carriers to save you time and money.

Construction Type
Most residential homes are built using frame construction and have a larger chance of loss due to fire and windstorm. While most commercial buildings are built using concrete block or other fire resistant materials and expect to pay a lower premium per hundred.

Optional Coverage
All builders’ risk policies can be custom designed to meet your needs. We can add optional coverages such as windstorm, flood and earthquake. Other options include,

  • Business income
  • Materials in transit to the construction site
  • Materials in temporary storage

Commercial General Liability Insurance cannot be written on the policy. A separate Premise Liability can be written to handle the liability to others. This does not include coverage for workers that get injured on the job site.

Commonly Asked Questions

When Should Coverage Start?

Coverage on the structure needs to be in place before the start of the project. Many lending institutions will require coverage to be in place prior to the first draw. If the project has already started then coverage can still be obtained as long as the project is less than 30% completed.

Can the Policy Limits be Adjusted Mid-Term?

In today’s world it is nearly impossible to anticipate material costs. The supply chain is having crippling effects on all building materials, so building prices are constantly moving up. The insurance carriers realize this problem and coverage can be adjusted up to match the new building costs.

When to Cancel the Policy?

Builders Risks Insurance is only meant to be in effect during the building process. After the project is complete a permanent policy must be put into effect.

Can the Policy be Renewed?

Policies can be renewed only at the discretion of the insurance company. Some insurance carriers only give you one shot to complete the project and others will allow you to renew until the project is complete.

Coverage Period?

Builders Risk can be written for coverage periods 3 months all the way to 18 months.

Who can own the Policy?

The policy can be written in the name of the Property Owner or the General Contractor.

Why Barbee Jackson Insurance

Barbee Jackson Insurance is one of the country’s leading insurance agencies specializing in Commercial and Residential Builders Risk Insurance. Our Agents are trained to handle all types of projects ranging from residential homes to large multi million dollar commercial projects. Call today to get started (850) 389-2001

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