Builders Risk Insurance Exclusions

Builders Risk Insurance Exclusions

builders risk insurance ohio

Having the proper type of insurance is vital to keeping your building and the contents inside it safe. Builder’s risk insurance protects your building against various risks including fire, explosions, and vandalism. It can cover your earnings as well. However, there are exclusions. Learn more about the types of coverage offered by builders risk insurance Ohio. In this article, we’ll cover the most common types of exclusions and how to avoid them.

Builder’s risk insurance is a form of property insurance that protects a building while it is under construction

This type of insurance covers a variety of risks that buildings are subject to while in the construction phase. It can protect against many of these potential problems, including earthquake, high winds, and vandalism. Unlike other property insurance policies, builders risk insurance can be applied to both new construction projects and existing buildings that are being renovated. Although many benefits are associated with builders risk insurance, some are not as readily apparent.

It covers fire, wind, vandalism, explosions, and theft

When constructing a new building, builders should be aware of the risks involved. While many types of insurance cover these risks, there are also exclusions. In most cases, builder’s risk insurance will not cover certain types of accidents, such as flooding, earthquake, or wind in beach zones. Builders risk coverage also generally doesn’t cover accidental damage to land or satellites. However, some policies include additional coverage for valuable papers, as well.

It can include earnings

When you purchase a builders risk insurance policy in Ohio, you may also be covered for your profits. This type of insurance reimburses contractors for a pro-rata percentage of the profits they earned based on the profit assumptions in their job estimates. Other covered events include mechanical breakdown of covered equipment and artificially generated currents damaging equipment. You can also purchase coverage for the loss or explosion of steam/hot water boilers.


While a builders risk insurance policy may be relatively easy to purchase, understanding the risks associated with it is crucial to determining whether you need it. In most cases, an Ohio builders risk insurance policy is written on an all-risk basis, meaning that it will only exclude the risks specified in your contract. This type of policy covers both property at the construction site and in transit. Ohio builders risk insurance can also be written on a completed value basis, or a reporting-form basis, which means that the limit of insurance is based on the estimated finished value of the project.

Getting it

Getting builders risk insurance in Ohio is fairly straightforward, but you should know the risks involved so you can optimize your coverage. Most policies are written on an all-risks basis, which means that they exclude all risks except those specifically listed in the contract. This applies to both the property at the site of construction and any property in transit to and from it. Other types of OH builders risk insurance policies are written on a reporting form or completed value basis, which limits the amount of insurance you carry.

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