Who Buys Builders Risk Insurance

On a daily basis, most people pass by at least one area in which construction projects are taking place. And where there are construction projects in the works, more than likely, builders risk insurance coverage was secured. After all, a builders risk policy covers a person's or organization's insurable interest in materials, fixtures and/or equipment awaiting installation (or after installation) during the construction or renovation of a building or structure, should those items sustain physical loss or damage from a covered loss.

If you’re an agent who’s ever issued course of construction coverage before, ask yourself: who are your customers? Do you have a mental image in mind?

Now ask yourself, what types of potential commercial or residential builders risk clients could you be overlooking?

Even agents who’ve serviced course of construction accounts for years might still be surprised to learn that the variety of potential clients who buy builders risk insurance extends well beyond the common answer of “owners and contractors.” While this answer is still technically correct, there are many possible circumstances that could lead any number of individuals or entities to purchase a builders risk insurance policy. Those broader horizons mean you might have the opportunity to generate leads and build client relationships with entirely new demographics and diversify your client database, thus, growing your business in the process.

Clients who would purchase a builders risk policy could be:

  • A homeowner remodeling to create a modern, open design concept
  • A development company building a new apartment complex with townhomes and 6+ unit dwellings
  • A medical office that needs builders risk insurance during a remodel
  • A school district laying the foundation for a new elementary facility
  • A land developer building a new subdivision
  • A retailer building a new sandwich shop in a suburban strip mall
  • The U.S. federal government performing construction of a new military base
  • A city council preparing to perform renovations to a city park
  • A subcontractor who needs an installation floater for the air conditioning units to be installed in several commercial structures
  • And many more!

Builders risk insurance (also called inland marine or course of construction coverage) is a versatile product that can often be secured in the name of almost any individual or entity holding an insurable interest in the risk. That versatility allows for a wide array of clientele, increasing your opportunity to sell and build business through builders risk coverage.

To learn ideas for generating leads and expanding your business with builders risk policies, download Constructing Your Builders Risk Book of Business.

This is intended as a general description of certain types of insurance and services available to qualified customers. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.

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