Builder’s Risk Insurance in Alabama: A Broker’s Guide
Note: Distinguished Programs no longer offers Builder’s Risk or Vacant Building insurance. Explore our other programs for tailored solutions.
In a state known for its unpredictable weather and economic resilience, Alabama’s construction projects face unique challenges. From hurricanes on the Gulf Coast to rapid urban development in cities like Birmingham and Huntsville, the need for comprehensive Builder’s Risk Insurance has never been more critical.
To address these diverse risks, Distinguished’s Builder’s Risk Program offers tailored solutions for Alabama’s construction needs. This guide covers our program’s coverages, costs, and benefits, making it the ideal choice for contractors, developers, and property owners statewide.
We’ll outline the projects we cover and risks we address, equipping you to protect your clients’ investments in Alabama’s expanding construction market.
What Kinds of Projects Will Distinguished Cover in Alabama?
Distinguished’s Builder’s Risk program insures a variety of the most common construction projects. This includes projects that involve:
- Betterments
- Renovations
- New Construction
We also insure a variety of building types, including single-family homes, mixed-use buildings, and commercial properties. You’ll be able to help insure homeowners looking to redo their basement suite in Madison and major developers putting up a mixed-use tower in Birmingham, all under the same program.
Have further questions about what kinds of projects we can accept? Reach out to our team for a more detailed explanation of how our Builder’s Risk program can help you insure projects across Alabama.
Who Needs to be Insured by a Builder’s Risk Policy in Alabama?
For a Builder’s Risk policy anywhere in the United States, it’s important everyone with a financial stake in the project be named in the policy. This can include:
- Property owners
- General contractors
- Subcontractors
- Engineers
- Architects
- Financiers
- Developers
Typically, whoever has the largest financial stake in the project will take out the policy while naming everyone else as an insured. You can learn more about this topic in our guide to who pays for Builder’s Risk.
What Coverages Does Distinguished’s Builder’s Risk Offer?
Our Builder’s Risk program is a comprehensive insurance solution that covers under-construction properties and their works sites against all the most common risk factors.
This includes damages that arise from:
- Fires
- Theft
- Vandalism
- Weather events
We are also proud to offer coverages beyond property damage for buildings, temporary structures, and building materials. Our program also offers your clients general liability insurance, which can help cover legal costs that can occur on work sites.
For instance, if your client were sued after someone tripped and injured themselves on their worksite, this general liability coverage would cover the legal costs of defending them in court and any payouts should they be found liable.
Beyond property damage and general liability, Distinguished’s Builder’s Risk program also offers coverages for:
- Soft costs
- Mold and fungus
- Off-site materials in transit
What Doesn’t Our Program Cover?
Our Builder’s Risk program does not cover some specific risks. These include:
- Damage done intentionally to a covered item
- Injuries to employees working on the project
- Costs related to manufacturing defects
- Damages related to terrorism, nuclear attacks, or military actions
Other policies should offer coverage for some of these risks. For instance, employees injured on the job should be covered by their Contractor’s General Liability policy.
To see a complete list of exclusions and coverages, you can explore our Builder’s Risk program page.
What Determines the Costs of Builder’s Risk in Alabama?
The cost of a Builder’s Risk policy for one of your clients in Alabama will typically be somewhere in the range of one to five percent of the project’s total cost.
However, every project is different, so underwriters will determine the final cost of a policy based on the following factors:
- Location: Construction sites near bodies of water, in higher crime areas, or that include some other unique risk factor would increase the cost of the policy.
- Materials: Certain materials like wood are more prone to fire or mold, making them more expensive to insure.
- Cost of the project: The larger the project’s TIV, the more expensive a policy will be.
If you want a quote for your client today, sign up with us and submit your business online through our Broker Portal. In most cases, we should be able to offer you a quote immediately. Should a manual review need to be done for a niche case, then turnaround times are roughly 48 hours.
Why Partner with Distinguished for Builder’s Risk Clients in Alabama?
Insurance brokers looking to expand their business in Alabama should consider partnering with Distinguished because we offer much more than a comprehensive Builder’s Risk program.
When you partner with us, we can also offer you and your clients:
- Instant Quotes: Our cutting-edge online platform accelerates the submission process, often providing bindable quotes instantly.
- Industry Leaders: As a top Builder’s Risk insurer nationwide, we offer your clients enduring stability and premium coverage options.
- Round-the-Clock Support: Our dedicated claims team operates 24/7, ensuring your clients always have access to support and minimizing project interruptions should they need to file a claim.
- Versatile Solutions: From residential builds to commercial complexes and mixed-use developments, we cover the entire construction spectrum.
- Seasoned Professionals: Our underwriters bring years of specialized expertise to the table, meaning we can handle even the most unique and complex projects.
- Adaptable Coverage Periods: Select from three, six, or 12-month terms, with hassle-free extensions and smooth transitions to vacant building policies when necessary.
Get a Quote from Distinguished Today
Getting a bindable quote for one of your Builder’s Risk clients is a simple three-step process.
- Register with us.
- Sign in to our Broker Portal.
- Submit your documents.
When submitting business for a Builder’s Risk client, everything gets done online through our portal. During the application process, you’ll need to fill in information like:
- The kind of project you need insured
- The scope of the work
- The named insureds
- Loss history
If you have any questions about submission, please reach out to our team or follow along on our Builder’s Risk Submission Tutorial.
For further information about our Builder’s Risk program, you can download our Builder’s Risk eBook, which goes more in-depth into what our program offers, how we calculate premiums, and when this type of insurance is the right decision for your clients.
If your client is interested in Coastal Builder’s Risk, we also offer this program in Alabama. Learn more about coverages and specifics in our guide to Distinguished’s Costal Builder’s Risk program.
Builder’s Risk in Alabama FAQs
Where do we offer our Builder’s Risk program?
Our Builder’s Risk program is available almost everywhere in the United States, including markets like:
The only places in the United States where we cannot insure a Builder’s Risk project are:
- Hawaii
- Kentucky
- Suffolk County, NY
What is our max total insurable value?
The highest TIV we can insure is $20 million. However, the maximum amount we can insure will depend on the kind of project being done, such as:
- $7.5M maximum TIV for frame
- $5M maximum TIV for betterments only
- $20M maximum TIV for everything else
About Distinguished Programs
Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate, Community Associations, Surety, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.
View a full list of our programs and submit business with Distinguished.
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