Builders’ and Vacant Risk Insurance

If you own a vacation home or are thinking about purchasing or building a house in the Pembroke Pines, FL area, consider your options for Builders’ or Vacant Risk Insurance. We are McCormick Insurance Inc. We want you to have the coverage you need. 

What is Builders’ Risk insurance?

Builders’ risk insurance covers homes during construction. If you own the land where the property is being built, you should consider purchasing builders’ insurance. Check with the builder or contractor to see what type of insurance they have, and the claim limits of their policy. During the course of construction, there may be vandalism or theft of the building materials and equipment. Even if the materials are stored off-site, they may be covered.  In Minnesota, a builders’ risk policy can be written on the completed value, or on a reporting form basis. If you purchased custom-made materials to build your house you should certainly consider purchasing Builders Risk Insurance.

What is Vacant Risk Insurance?

Vacant risk insurance protects a residence while it is vacant. Speak with our insurance agent before choosing your policy because a vacant house differs from an unoccupied house and the rates will vary. A vacant house may go unnoticed, but it may not. It is an easy target for thieves and vandals. If you split your time between your main residence and a vacation home, check about using the same insurer for both, they may provide a cost-efficient combination of policies for both homes. 

What are some differences between the two?

Both insurance types protect you from the financial risk of owning an empty house. Builders’ risk insurance covers the period the house is under construction. Some insurers may even provide coverage for less than a 12 month period. Vacant Risk insurance covers a home while the residents are away. An independent agent at McCormick Insurance Inc., in Pembroke Pines, FL, will help you find the best policy for your situation.