The use of wood is synomouse with building things, but wood frames are becoming increasingly common in construction for a variety of reasons. Thanks to innovations spurred by the wood products, construction & engineering industries, timber is now being used in construction where historically concrete or steel were the only options. However, building with wood comes with unique risks, making wood frame builders risk insurance a necessity. Unfortunately insurance on wood frame buildings, especially for townhomes, multiresidential properties etc., has always been challenging due the risk of damage or destruction by fire, but ALIGNED can help you find the right wood frame builders risk insurance policy for your project regardless of the size of complexity.
FAQ:
What is Wood Frame Builders Risk Insurance?
Wood Frame Builders Risk Insurance, a specialty type of builders risk insurance, is an essential coverage for construction projects. Specifically designed to safeguard wood frame structures during the construction phase, this insurance is often referred to as ‘course of construction insurance’. It plays a pivotal role in protecting your construction business from potential financial losses that could arise from unforeseen incidents.
Unpredictable events such as fire or theft can result in significant damage to the building or construction materials. In such scenarios, Wood Frame Builders Risk Insurance serves as a financial safety net, helping developers, homeowners and/or construction companies recover from the losses with disruption to the financial stability of your business operations. It covers the cost of repairing or replacing damaged structures, damaged materials etc. thereby ensuring that your project stays on track despite the setbacks.
However, it’s important to note that Wood Frame Builders Risk Insurance is considered high risk. This is primarily due to the increased risk of fire, which can potentially destroy the entire project. Wood, being a highly combustible material, poses a greater risk compared to other construction materials. As a result, this type of insurance is often difficult to place.
Despite the challenges in securing Wood Frame Builders Risk Insurance, it remains one of the best ways to mitigate risks associated with wood frame construction. By providing comprehensive coverage for your project, it allows you to focus on what you do best – building and creating, while it takes care of the potential risks.
Wood Frame Builders Risk Insurance is a crucial investment for any construction business specializing in wood frame structures. It not only protects your project during the construction phase but also shields your business from unexpected financial losses. So, if you’re in the construction industry or planning on building a wood frame structure of any type, make sure to consider Wood Frame Builders Risk Insurance for your next project.
What type of coverage do I need as a wood frame builder business owner?
As the owner of a wood frame construction project, you need coverage that will protect you against property damage, theft, vandalism etc. during all the phaese of construction. With a comprehensive wood frame builders risk insurance policy, your building company will be protected in the event of a lawsuit alleging third-party property damage or bodily injury. The building under construction and any construction materials on-site will also be protected from insured perils, like fire. Further, you want insurance that will cover you for the entire duration of the project, and that’s exactly what course of construction insurance offers. Your project will be covered from beginning to substantial completion.
Who needs wood frame builders risk insurance?
Everyone from business owners and general contractors to renovation contractors, real estate developers, and construction companies could benefit from wood frame builders risk insurance. In essence, any business that is building, working on or renovating a property using timber should ensure they are clear on who is responsible for securing appropriate insurance should the building burn down during construction.
How much does wood frame builders risk insurance cost?
The cost of Wood Frame Builders Risk Insurance can vary significantly based on a multitude of factors. Here are some key elements that can influence the cost:
- Project Cost: The overall cost of the project is a major determinant. Higher the project cost, higher the insurance premium tends to be.
- Value of the Building: The estimated value of the building upon completion can also affect the cost. A higher value building typically requires a higher insurance premium.
- Type of Project: The nature of the project, whether it’s a new construction, renovation, or extension, can influence the cost.
- Previous Insurance Claims: If your business has a history of insurance claims, insurers may consider it a higher risk, which could increase the premium.
- Location: The geographical location of the project can impact the cost. Areas prone to natural disasters like floods, earthquakes, or high winds may have higher premiums.
- Construction Materials: The type and quality of materials used in construction can affect the cost. Using fire-resistant materials, for example, could potentially lower the premium.
- Security Measures: The presence of security measures at the construction site, such as surveillance cameras or security personnel, can reduce the risk of theft and vandalism, potentially lowering the insurance cost.
- Duration of the Project: Longer projects may have higher premiums due to the increased exposure to risk over a longer period of time.
Remember, each insurance company may weigh these factors differently, so it’s important to shop around and compare quotes from different insurers which is where ALIGNED Insurance excels as our job as insurance brokers is to always get the best for our clients from the often challenging wood frame builders risk insurance market.
Get ALIGNED with wood frame builders risk insurance!
When you work with ALIGNED, you will have an insured expert at your fingertips, helping you find the right wood frame builders risk insurance for your company. We are constructions and business insurance experts and will ensure you find a policy that meets your needs and budget.
Protect your wood frame construction project from risk with builders risk insurance. Contact ALIGNED to get started today. You can also click here for a free quote now.
