Construction is Booming – and so is the need for Builders Risk Coverage. If your insured is an owner or contractor, they may face many possibilities of loss to their building during the course of construction: Consider the following claim scenarios:
Collapse: A house was being constructed in the middle of a pasture with the land grade sloping toward the construction site. The roof was on the house, but the gutters and downspouts had not yet been installed. The area experienced heavy rains for a month. With no gutters installed, the rainwater fell directly around the foundation of the house. The resulting weight of the saturated ground caused a basement wall to collapse. The basement wall had to be repaired causing a one-month delay in the project and additional costs.
Fire: The insured was contracted to act as a general contractor working on a three-story office building where construction had started 8 months prior. A subcontractor was welding a stair system to the roof access when an ember from the torch ignited a fire. The fire caused considerable damage to the roof, sheetrock, insulated ductwork, and two heating units. There was also limited water damage caused by the fire department’s use of water to extinguish the blaze.
Water Damage: The insured had three homes under construction at the same work-site. The corner property, which was scheduled to be up for sale in two weeks, had a completely finished basement. A subcontracted plumber had recently installed a fire hydrant on the site earlier that day. The insured received a call from a neighbor during the night alerting him of a flood on the job site. It was determined that the plumber failed to use a proper retainer and hold down rod when he installed the fire hydrant. The end cap of the fire hydrant came loose during the night and discharged 40,000 gallons of water onto the work site. The insured’s properties had 4 to 6 inches of water in the basements of all three units. Additional damage was done to the fixtures and carpet of the home with the finished basement.
Theft: A house was being constructed on the site of a vacant lot. The interior finishes of the house were completed, but the windows had not yet been installed. During the night, two thieves forced their way into the home through a basement steel door. The thieves made off with two stoves, three refrigerators, a water meter, some copper piping, and two gas-fired boilers. Damage was also done to the steel door and portions of the interior walls. As a result of the theft and the damage to the property, the sale of the home was delayed for two weeks.
Vandalism: A new building was 90% complete and had locked doors and windows in place. During the night, vandals broke a window on the second floor of the building by throwing a fire hydrant cover through it. The impact of the fire hydrant cover damaged installed floor tiles on the second floor. The contractor noticed the damage the next day and reported the incident to the insured and the police.
Erickson-Larsen, Inc. & Bjornson/Sentinel – E&L has competitive builders risk markets available. Contact us today, or get an instant quote by phone: 1-855-451-3736.
Disclaimer: This article is intended for general information purposes only. The information contained is not intended to constitute and should not be considered legal or professional advice, nor does it represent that coverage does or does not exist for any particular claim or loss under any policy.