Replies

1. 
   Mike_Smith | Dec 09, 2001 07:04am | #1

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   Builder's Risk is typically an addendum to the HOMEOWNER'S policy.....andit's name usually fools people into thinking it's the builder's responsibility.. but not in my book...

   .. i state right in my proposal that the homeowner should get a Builder's Risk addendum from their agent.....if it's a small job , i tell them they won't need it.. but big jobs we both feel better if it's in effect...

   Builder's Risk covers all the things that are delivered to a job but not installed.. so it typically covers the things that would be in dispute as to who owns it ...

   now there is no dispute.. and its cause is teh construction .. for the benefit of.. the homeowner.. so they buy it.. not me..

   .. i pay plenty for al my other insurance coverage....the Builder's Risk goes on the Homeowner

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   Michael_Rimoldi | Dec 10, 2001 02:08am | #2

   *I had to buy it while constructing my house for myself as part of the bank's loan requirements. It was only $440. per year but when I read the fine print, basically nothing is covered unless the place is destroyed by a tsunami on the third Tuesday of March while under a full moon and witnessed by a virgin who is wearing green shoes....and it still carries the $500. deductible.Mike

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   Mike_Smith | Dec 10, 2001 02:40am | #3

   *here's the classic example i use... and feel free to correct me if i'm wrong...you are the GC, the windows are delivered to the job, you sign the invoice ( or you don't .. no difference).. for $12,000.. store them safely inside the structure ....Monday morning.. they're gone..who owned them ?not the supplier...and they weren't installed...so.. this could get sticky..butyou have a clause that said the homeowner should get a builder's risk addendum..and they actually followed the written advice... so he contacts the agent.. and they pay...that's about as simple as it gets, if you don't have it.. you could maybe file under your builder's liability.. could be a big test though...good luck to you... this is why they invented Builder's risk..

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   Michael_Rimoldi | Dec 10, 2001 04:30am | #4

   *Mike, Sounds like a reasonable scenario. I did read part of my policy that in legalize stated stored materials are not always covered unless the site is secured and enclosed. So I don't know how a building without windows would be rated? Especially if the windows were the materials stolen. But no two ways about it, if you didn't have the policy you would DEFINITELY eat the loss!Mike

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   Tommy_B. | Dec 12, 2001 05:50am | #5

   *My theory, and some of this I developed from what I learned on this board in previous threads that Mike was a part of. (to give credit where it is due)I also state in my contract that the homeowner shall purchase a builders risk policy.They usually balk at this although last time I checked it would only be a few hundred bucks for the average 100 k job. I tell them two things after which they usually see the light.First, On the average remodel, I do not control access to the site (ie. "their" home.) And further, generally, I cannot institute adequate security measures to protect equipment, materials and the like against theft, fire and vandalism by their kids, friends, passersby, neighbors, etc. It therefore would be unreasonable for me to assume the risk.Second, it is in their best interest to have their insurance agent notified of the impending improvements to the property, and to get builder's risk from him. That way the homeowners and builder's risk are all his baby. Less weasil room in the event of a claim.I also let them know that it doesn't matter who writes the check, they will be paying either way.It really is best if they take the policy out.And I would agree that the Builder's risk policy that I am familiar with is pretty much worthless.

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   rmanbike | Dec 12, 2001 05:52am | #6

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   Do most builders go for the additional construction materials coverage? Cost seems high, 150.00 for just 5,000 coverage and not sure if their is a deductible added to that. Anyone try and collect on the materials coverage, thanks Roger