Building a property can be an exciting yet expensive undertaking. Construction costs, materials, labor, and other expenditures can quickly add up. One of the costs that many property owners overlook is builders' risk insurance. This type of insurance is designed to protect the property and its contents during the construction process.
Fortunately, there are several ways to save money on builders' risk insurance. In this article, we’ll discuss five of the most effective ways to save money on this type of insurance. By following these tips, you can save hundreds, if not thousands, of dollars on your builders' risk insurance premium. Read on to learn more about saving money on this important type of coverage:
Pick a Safer Location for Construction Work
When determining your builders' risk insurance premium, consider that buildings located in areas with higher crime rates or more extreme weather conditions, such as hurricanes and floods, usually carry higher premiums. When possible, try to pick a safer location for your construction work, as this can help reduce the cost of your insurance.
Choose Higher Deductibles
Deductibles are the amount of money you have to pay out of pocket before your insurance kicks in. Higher deductibles can lead to lower premiums since you’ll be taking on more of the risk yourself. However, ensure you don’t set the deductible too high, as this could leave you on the hook for more money than you can afford if something goes wrong.
Bundle with Other Insurance Policies
Many insurance companies offer discounts if you bundle your builders' risk insurance with other policies, such as homeowners or auto insurance. Bundling can help you save money on your premiums, so be sure to ask your insurance provider about this option.
Hire Seasoned Contractors and Subcontractors
When it comes to builders' risk insurance, one of the best ways to save is by hiring experienced contractors and subcontractors. This may sound counterintuitive, since experienced contractors and subcontractors generally charge more than inexperienced ones. However, hiring experienced contractors and subcontractors can actually save you money in the long run by reducing the risk of costly mistakes and errors.
Experienced contractors and subcontractors are more likely to be familiar with local building codes and regulations, which can help ensure that your project is completed correctly the first time, which will help you avoid costly delays and repairs. As a result, you may be able to secure a lower rate for your builders’ risk insurance due to the decreased risk of a claim.
Choose the Right Coverage
Choosing the right coverage for your builders' risk insurance is another great way to save money. Make sure that you understand what coverage is included in your policy and that it meets your needs. Some policies may not include coverage for certain risks, such as vandalism or theft. If these are risks that you are concerned about, make sure you purchase a policy that covers them. Also, if you are only working on a small project, you may be able to get away with purchasing a less comprehensive policy.
Conclusion
There are many ways to save on your builder’s risk insurance. These include picking a safer location for your construction, choosing higher deductibles, bundling with other insurance policies, getting the right contractors, and getting the right contractor insurance coverage. By following these tips, you can save money on your builder’s risk insurance and make sure you have the coverage you need. It is important to do your research and shop around to ensure you are getting the best deal.
J.F. Shaw Insurance Agency offers various solutions, including contractor insurance in Marietta, Georgia. Contact us today to learn more!