The key types of covers you get in your builder's risk insurance usually include the following:
- Fire caused by accident or started by a third party (Not including any members of your - or the site owner's - staff)
- Theft or vandalism of property by a third party, as any damages caused to the property by your employees is not covered
- Lightning strikes, hailstorms, and some other natural disasters
- Crashing vehicles (overland and airborne)
Since builder's risk insurance coverage is complex, it is important that you understand not all kinds of damage to property is covered in this type of insurance. We have already stated that damages caused by your employees is not covered in a typical builder's risk insurance policy. Other possible causes of peril excluded from your builder's risk insurance coverage may include:
- Certain natural or artificial disasters, such as earthquakes
- Any kind of flooding or damage caused by water
- Structure collapse for any reason other than those endorsed in the policy terms (where possible)
- Damage to uncovered property caused by extreme weather
- Mechanical faults and breakdowns of machinery
- Damage caused as a result of flawed design, poor planning, substandard materials, or unskilled work
- Any penalties that are included in your service contract
Speaking of exclusions, your builder's risk insurance coverage will not have any contribution in certain other types of covers, such as workplace accidents that occur on site, your liabilities, equipment or tools, and damaged property that did not belong to any of the parties listed as insured in your builder's risk insurance policy.