When you decide to renovate or remodel your home, you may find that you need added insurance even though the construction crew you hire carries its own insurance. Outdoor Insurance Services serving the Houston, TX metropolitan area offers the insurance you need to protect yourself and your home while it remains under construction or renovation.

Builder’s Risk Insurance Protects You

Your builder carries their liability policy and a workers’ compensation policy, which only protects their business. If a worker or the construction company owner becomes injured on your work site – in your home – they could also sue you. Builder’s risk insurance protects your financial security by covering the liability of having construction workers in your home.

Here’s why you both need insurance to protect the added liability created during construction projects. Your home insurance policy only provides a tiny bit of liability coverage – typically 10 to 25 percent of the home’s value. Suppose a construction worker incurred an injury while working on your home. In that case, they could double-dip on liability by filing a claim with both your insurance company and the construction company’s company. That would cost you if their injuries’ treatment exceeded the payout of your liability coverage. Without the builder’s risk insurance, the rest would come out of your pocket.

Builders Buy Builder’s Risk, Too

You might think that sounds redundant, but when a builder undertakes a project to construct a home on speculation, meaning they’re building it to see who will buy it, they assume all of the risks. In this case, the builder’s risk policy protects their investment and comprises part of their commercial insurance package. The builder also carries workers’ comp and general liability. The construction company adds a builder’s risk policy to its package for added protection.

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Don’t get caught without the right insurance coverage. Contact Outdoor Insurance Services serving Houston, TX to obtain a builder’s risk insurance policy that protects your home while under construction or renovation.