Real estate investment can be an exciting and profitable venture, especially when it involves buying and renovating properties. However, with this potential for profit comes a set of risks that investors must manage. One of the most crucial tools in an investor’s arsenal is builder’s risk insurance. This specialized coverage not only protects the structure during the renovation process but also offers premises liability coverage. Here’s why it’s a must-have for every real estate professional:
What is builder’s risk insurance?
Builder’s risk insurance is a type of property insurance specifically designed to cover buildings under renovation or construction. It is a temporary, specialized policy that covers the property from the start of the project until its completion. This insurance is not limited to new construction; it is equally valuable for real estate developers, property owners, or general contractors overseeing renovation projects.
Key benefits of builder’s risk insurance
Protection during renovation
The primary benefit of builder’s risk insurance is that it provides coverage for damage to the structure during the renovation process. This includes protection against risks such as fire, vandalism, theft, and wind/hail and hurricane damages. Without this coverage, property owners could face significant financial losses if the structure is damaged during construction.
Premises liability coverage
In addition to protecting the property itself, builder’s risk insurance also provides premises liability coverage. Premises liability refers to a property owner’s legal responsibility for injuries and accidents occurring on their property due to unsafe conditions, such as slip and fall accidents, inadequate maintenance, defective conditions, negligent security, and fire hazards.
Customizable and flexible
Every renovation project is unique, and builder’s risk insurance policies can be tailored to meet the specific needs of each one. Coverage can be customized based on the type of construction, the scope of the renovation, and the duration of the project. This flexibility ensures that property owners have the right level of protection at all times.
Our competitive advantage
At Runnels Insurance, we work with multiple builder’s risk insurance companies, ensuring that we offer very competitively priced policies. Although we are located in Brandon, we write policies all across the state of Florida. Additionally, we have agents who specialize in working with the property investment community and are very familiar with their needs. Our expertise allows us to provide tailored solutions that meet the unique requirements of real estate investors, property owners, and contractors. Reach out to us today at 813-653-0681 and ask for Larry Johnson or email him at larry@runnelsinsurance.com
