What is builders risk insurance?
Construction projects are major undertakings, and there are many risks that can delay or outright prevent completion. When something happens to a construction project in Texas, builders risk insurance might provide financial help.
Builders risk insurance provides special coverage for construction projects while they’re underway. If a covered incident causes delay or cancelation, the insurance might compensate affected parties.
Who in Texas can benefit from having builders risk coverage?
Any stakeholder involved in a major construction project might want builders risk coverage in place. Texas general contractors, subcontractors, lenders and property owners may benefit from coverage.
Contractors are usually the ones to purchase the policy, as they’re usually the ones held responsible if a project fails. Lenders and owners might require contractors to carry coverage when working on a larger project, and contractors should consider coverage even if it’s not required. Less often, lenders or property owners themselves might purchase coverage