Builders Risk Insurance in Illinois

Learn more about our builders risk insurance coverages and get a quote from one of our knowledgeable independent agents. Providing coverage to residents across Illinois, Arizona, Florida, Indiana, Louisiana, Michigan, Montana, Nevada, New Hampshire, Ohio, Tennessee, Texas, Washington, and Wisconsin.

What is builders risk insurance? 

Every construction project is subject to issues that could cause delay or outright incompletion. The contractor might be held financially responsible in these situations, which is why most contractors in Illinois working on sizeable construction projects should have builders risk insurance,

Builders risk insurance is a specialized coverage designed for construction projects. It might provide financial assistance when there’s an unexpected disruption in work.

Which Illinois construction companies need to have builders risk coverage? 

Illinois contractors should consider builders risk if they work on larger construction projects within the state. If delay or incompletion would result in major costs, coverage is probably recommended.

Policies are most often purchased by developers, general contractors and sometimes larger subcontracting businesses. Property owners or lenders might occasionally purchase coverage, but they more often stipulate that the hired contractor gets it.

What assets are protected under builders risk policies? 

One of the important protections that most builders risk policies include is protection for assets at a construction site. These policies typically cover equipment, supplies, and work-in-progress, with specific coverages varying. Protection might extend to:

• Structures under construction
• Completed structures
• Major equipment and machinery
• General equipment and tools
• Construction materials and supplies

Exactly what structures are covered can especially vary among policies. Contractors who want this specific protection should work with a specialized insurance agent. An agent who’s well-versed in builders risk policies will know how to best insure in-progress and completed structures.

What types of projects do builders risk policies cover? 

Builders risk policies can cover most larger construction projects. Contractors may get a policy when building multi-family residential buildings, retail spaces, industrial facilities, offices and more. Policies are also usually available for substantial renovation projects, additions, landscaping or hardscaping.

Can single-family home construction be covered under builders risk? 

While builders risk policies are available for residential developments, they’re not commonly used for individual houses. These tend to be much smaller jobs than what builders risk typically covers.

If coverage for a single-family house is needed, however, an insurance agent specializing in builders risk may be able to find one. 

Which perils are covered by builders risk policies? 

Builders risk policies typically cover a spectrum of peril. Commonly covered risks include adverse weather events, water damage, fire and smoke, vandalism and theft, and others. Precisely what a specific policy covers depends on that policy’s terms.

Can one builders risk policy cover multiple construction projects?

Builders risk policies are available for multiple projects, but not all policies are able to cover more than one project. There are a few different policy types that might be appropriate:

• Single Policy: Typically covers one new construction, remodel or installation project.
• Reporting Form Policy: Typically covers multiple new construction projects, either residential, commercial or a mix.
• Blanket Deposit Premium Policy: Typically for contractors with 25+ new construction projects annually.
• Blanket Installation Policy: Typically for trade contractors with regular remodel or installation projects.

Are policy extensions available for builders risk policies?

A policy extension may be available when there are manageable delays that don’t justify an actual claim. Many policies have a limit of one extension, after which a new policy might be needed if work still isn’t finished.

Contractors that need an extension or new policy should consult with a knowledgeable insurance agent, who can help determine the best coverage solution for a project.

How much does builders risk coverage cost? 

The cost of builders risk policies varies, with premiums being affected by factors such as the project’s scope, size, location, equipment utilized and overall expenses. 

To determine the cost of a specific project, contractors can get several custom quotes by working with an independent insurance agent. Independent agents are able to request custom quotes from several insurers.

How can Illinois contractors get builders risk insurance for their construction projects? 

If you need builders risk insurance for a construction project in Illinois, reach out to the independent agents at Gee-Schussler Insurance. Our agents can help you find coverage that’ll provide the protections your project — and your business — need.