Does builders risk insurance cover theft?

Does Builders Risk Insurance Cover Theft?

As a builder or a construction company, you are aware of the risks and uncertainties involved in the construction process. One of the primary concerns is the security of your building materials and equipment on site. A builders risk insurance policy is designed to provide financial protection against losses or damages that may occur during the construction process. But does builders risk insurance cover theft? Let’s dive into the details.

What is Builders Risk Insurance?

Before we dive into whether builders risk insurance covers theft, let’s understand what it is. Builders risk insurance is a type of property insurance that covers a building or structure during its construction or renovation. This policy provides financial protection against various risks, including natural disasters, fire, and other accidental damage. Builders risk insurance is typically issued for a specific period, usually from the start to the completion of the construction project.

Does Builders Risk Insurance Cover Theft?

Now, let’s get to the main question: does builders risk insurance cover theft? The answer is generally no. Builders risk insurance policies typically exclude theft and theft-related losses. The standard policy language usually specifies that the policy does not cover theft, burglary, or loss of property by theft.

Why is Theft Excluded?

So, why is theft excluded from builders risk insurance? There are several reasons for this:

• Liability concerns: Insurance companies are concerned about potential liability issues arising from theft-related claims. They don’t want to be liable for losses that may occur due to the negligence of third parties.
• Policy exclusions: The standard policy language excludes theft to avoid potential disputes and conflicts between the insured and the insurer.
• Theft is a different risk: Theft is a distinct risk that requires specialized insurance coverage, such as a crime insurance policy or a fidelity bond.

What About Specified Perils?

Some builders risk insurance policies may cover specified perils, including theft. However, these policies typically require additional premium payments and may have specific conditions and limitations. Specified perils coverage can provide protection against theft and other specified risks, such as fire, lightning, and windstorm.

Do I Need to Get Separate Theft Insurance?

If your builders risk insurance policy does not cover theft, you may need to purchase separate theft insurance. Here are some options:

• Crime insurance policy: A crime insurance policy can provide coverage against theft, burglary, and other crime-related losses.
• Fidelity bond: A fidelity bond can provide coverage against employee theft, embezzlement, and other internal theft-related losses.
• Construction crime insurance: Construction crime insurance can provide coverage against theft, vandalism, and other crime-related losses related to construction projects.

What to Do if You Need to File a Claim?

If you experience theft or any other type of loss during the construction process, it’s essential to follow the proper claims process. Here are some steps to follow:

• Notify your insurer: Report the loss to your insurance provider as soon as possible.
• Gather evidence: Collect evidence of the loss, including security footage, witness statements, and police reports.
• Complete a claim form: Fill out the claims form provided by your insurance company, and provide all necessary documentation.
• Get an appraisal: Get an appraisal of the loss, and provide a detailed list of the stolen or damaged items.

Conclusion

In conclusion, builders risk insurance generally does not cover theft. However, there are exceptions, such as specified perils coverage or separate theft insurance policies. If you’re concerned about theft or other crime-related losses during the construction process, it’s essential to review your policy and discuss your options with your insurance provider. Remember to follow the proper claims process if you need to file a claim.

Key Takeaways

• Builders risk insurance typically excludes theft and theft-related losses.
• You may need to purchase separate theft insurance if your policy does not cover theft.
• Specified perils coverage may provide protection against theft and other specified risks.
• Crime insurance policies, fidelity bonds, and construction crime insurance can provide additional coverage against theft and other crime-related losses.

Table: Builders Risk Insurance Policy Exclusions

Table: Builders Risk Insurance Policy Inclusions

Remember to carefully review your builders risk insurance policy to understand what is covered and what is excluded. If you have any questions or concerns, consult with your insurance provider or a licensed insurance professional.