As a business owner in Des Moines, Iowa, it's important to protect your investment with the right...
Construction projects in Des Moines, West Des Moines, and Ankeny are booming. From downtown Des Moines' mixed-use developments to West Des Moines' expanding commercial corridors and Ankeny's rapid residential growth, protecting these investments is essential. Here's what local construction professionals should understand about builders risk insurance.
What Is Builders Risk Insurance?
Builders risk insurance protects construction projects from unexpected damage during the building phase. This coverage safeguards your financial investment against losses from fire, vandalism, storms, and other covered events while construction is underway.
Why Des Moines Contractors Need Builders Risk Coverage
Des Moines' construction landscape presents unique challenges. Major projects like the Bridge District development and ongoing expansion near Jordan Creek Town Center face various risks. Local contractors need protection that accounts for:
Material Costs and Supply Chain Issues
With materials stored at multiple sites across the metro area, protection against theft and damage is essential. Many Des Moines contractors maintain supplies at locations from SE 14th Street to Mills Civic Parkway.
Weather-Related Risks
Iowa's severe weather can impact construction timelines and cause significant damage. Projects in flood-prone areas like Court Avenue or near Walnut Creek require additional consideration.
Project Delays
Construction delays can increase costs substantially. Whether you're building in Ankeny's Prairie Trail development or along the West Des Moines Microsoft corridor, protecting against delay-related losses is critical.
Understanding Coverage Requirements
Several parties involved in construction projects require builders risk insurance protection. Property owners investing in new developments need coverage to protect their financial interests. General contractors overseeing projects must maintain appropriate insurance levels to meet contractual obligations. Subcontractors working on specific aspects of the build should understand their coverage requirements. Project investors also need assurance their investment is protected throughout construction.
What Your Policy Protects
Builders risk insurance provides comprehensive protection for construction projects. This includes coverage for foundation work from the moment ground is broken. As the structure takes shape, the policy protects structural components through each phase of construction. Interior finishes receive protection as they're installed. Building materials stored on-site or in transit maintain coverage under the policy. Equipment permanently installed in the building also falls under the policy's protection.
Coverage Timeline Considerations
The ideal time to begin builders risk coverage is before any construction activity starts on the site. Protection should remain in place throughout the entire construction period until one of two events occurs: either project completion or occupancy of the structure. This timeline ensures continuous protection during the most vulnerable phases of construction.
Frequently Asked Questions
How long does builders risk insurance last?
Typically, policies cover the construction period, usually 3-12 months, with options for extensions based on project timelines.
Does builders risk cover worker injuries?
No, worker injuries fall under workers' compensation insurance. Builders risk focuses on property damage during construction.
Are tools and equipment covered?
Standard policies cover permanently installed items. Temporary tools often require additional coverage.
What about renovation projects?
Yes, builders risk can cover renovation projects, but coverage details may differ from new construction.
Get Expert Construction Insurance Guidance
Need help protecting your Des Moines construction project? Contact DSMIG to discuss your builders risk insurance needs. Our construction insurance specialists understand local building requirements and can customize coverage for projects throughout Central Iowa. Schedule a consultation today to protect your investment and meet local compliance requirements.
