Having Builders Risk Insurance while you build or renovate your investment properties can prevent you from losing your investment in the event of a claim.
Flipping homes or buying rental properties has become a booming business in Philadelphia in recent years, and for good reason… real estate is booming in the Philadelphia area right now. Kensington, Fishtown, Northern Liberties, and University City are just a few of the neighborhoods that are seeing a complete rejuvenation of old homes. Some are being restored, while others are being knocked down and completely rebuilt.
During the time when a home is under construction, a lot can go wrong. An uncapped wire, or soldering a pipe can lead to hundreds of thousands of dollars in damage and potentially shut down your dream of investing in real estate. It is important that you have the correct insurance coverage in place throughout the project life-cycle to protect your investment. Builders risk insurance is designed to protect your property during the construction phase. It is a property-only insurance policy that protects your investment property, and associated building costs should something happen to the structure itself.
In addition to money you have invested in the materials and labor, you have money tied up in legal fees, architecture, engineering, etc. that you’ll need to recoup in the event of a loss. A builders risk insurance policy will allow you to recover these expenses should disaster strike.
You will also need to consider who is responsible for obtaining the builders risk insurance and what the insurable interest is for each party. This could vary depending on who is building the structure, and may fluctuate throughout the project. Reviewing the project with an experienced agent on a case-by-case basis is your best bet.
At Risk Averse Insurance, we strive to provide you with the sufficient coverage and knowledge necessary to protect your investment and your future. Call one of our insurance professionals today to review your next construction project.
Call Risk Averse Insurance in Media, PA to discuss Builders Risk insurance for your business.Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.