In contrast to a traditional property insurance policy, which is typically an annual renewable policy, the policy term of a builders risk policy matches the entire construction project term.
A builders risk policy also offers a broad definition of named and additional insureds including owners, contractors, subcontractors and their employees, while the standard property policy typically only insures the policyholder.
In preparing an existing building for conversion from a densely occupied office property to a highly desired residential address, developers need to address the engineering and architectural issues, the financial security of the overall project, and ensure that their interests are protected throughout the renovation and the offering to the buyers. A builders risk policy can provide this financial protection through soft cost endorsements and delay-in-startup coverage endorsements.
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