Frequently Asked Questions about Builders Risk

The most important thing the policyholder should be doing is getting the project back on schedule. Putting a project back on its critical path to maintain the construction schedule is in and of itself a major undertaking. A claim can best be handled by an experienced public adjuster freeing the project manager and others to make the repairs and re-start the construction project.          

We believe a completed value form is generally better, as it allows you to focus on the project without worrying about reporting each phase to the insurance company as the project progresses. If a loss occurs mid construction, your policy limit is available up to the amount of the loss without having to worry about having enough insurance or having a penalty applied because the loss was in excess of what was reported prior to the event.

When a builder risk claim is reported, an adjuster from the insurance company will be assigned to the loss. Initially they will do a field inspection which in most cases will result in outside experts being hired to represent the insurance company’s interest. The next step will be a request for production of records such as cost, construction schedules, critical path planning, scheduler files, manpower reports, shrinkage information and other related information based on the type and phase of a project. This is a very time consuming process and you should have your professional public adjuster deal with all these issues and make your claim instead of the insurance carrier telling you what they feel they owe you.

Yes we have been hired by numerous clients to help on the delay claim. It is not usual to hear the insurance company say that a loss did not actually delay construction even though many thousands of dollars were paid for the underlying damages. For example: A fire may occur on one floor of a high rise under construction, but the water and smoke damage will cause damage throughout the building. The fire damage on a single floor may not cause the project to be delayed, but cleaning up the entire project area can incur significant costs and will cause a big delay. That amount needs to be determined by your professional public adjuster.