Your Insurance Questions

Testing coverage in builder’s risk insurance safeguards against damage that occurs while new building systems—like HVAC or electrical—are being tested during construction. It’s critical for projects in Colorado and Utah facing complex system start-ups or severe weather risks.

Yes, builder's risk insurance typically covers subcontractors’ work if they are listed in the policy, but always verify coverage specifics for your Colorado or Utah project.

Coverage for flood and earthquake is typically excluded from standard builder's risk policies, but many insurers offer these protections as add-ons or separate policies in Colorado and Utah. Ask about endorsements specific to your location's regional risks before starting your project.

Theft by employees is almost always excluded from builder's risk insurance. You'll need a separate fidelity bond or crime policy to get coverage for employee theft risks.

Soft costs in builder's risk insurance include non-physical expenses such as interest, legal fees, lost rents, and permit costs that arise from construction delays due to a covered loss. In Colorado and Utah, adding soft cost coverage is essential to fully protect your building project from financial setbacks.

Report the loss immediately to your insurer, document all damage with photos and receipts, provide detailed project information, and cooperate fully with the claims process.

Yes, builder's risk insurance is strongly recommended for significant renovations or additions in Colorado and Utah to cover potential losses during construction. It bridges critical gaps left by standard property policies, especially in high-risk zones.

Builder’s risk covers property damage to the construction project itself, while general liability protects against third-party injuries or property damage resulting from construction activities.

All parties with a financial interest—usually the property owner, general contractor, and sometimes lenders or key subcontractors—should be named insureds on a builder's risk policy.

Builder’s risk insurance rarely covers contractor tools or equipment. You typically need a separate inland marine policy for full protection in Colorado and Utah.

Standard commercial property insurance in Colorado and Utah usually does not cover property off-site or in transit. You’ll typically need an inland marine endorsement or a separate policy for mobile assets.

Yes, builder's risk insurance can typically be extended if your project is delayed, but you need to request this extension from your insurer before the current policy expires.

Builder's risk insurance premiums are calculated based on your project's value, location, construction type, coverage limits, and duration. Rates in Colorado and Utah are often higher for wildfire, hail, or flood-prone areas—so local risk matters.

Builder's risk insurance usually covers the entire construction period, starting at groundbreaking and ending at project completion or occupancy. Extensions are available if your project timeline changes.

Builder's risk insurance does not cover damage from earthquakes, floods, employee theft, contract penalties, or normal wear and tear unless these are specifically added. Coverage also excludes liability for injuries and contractor mistakes.

Builder's risk insurance covers the structure under construction, on-site and off-site materials, in-transit goods, and certain soft costs like extra loan interest or lost sales if delays result from covered events.

Builder’s risk insurance often covers fire, wind, hail, theft, vandalism, and lightning in Colorado and Utah. Coverage varies, so always check your policy’s specific terms.

Property owners, contractors, developers, and anyone with a financial interest in a construction project in Colorado or Utah should secure builder’s risk insurance before work begins.

Builder's risk insurance protects buildings and materials during construction or renovation from damage caused by fire, hail, theft, vandalism, and more. It's an essential, specialized policy for Colorado and Utah projects.

A deductible is the amount you pay out of pocket before your commercial property insurance begins covering a claim. Choosing a higher deductible can lower your premiums, but it means taking on more initial cost if you have a loss.