Builder’s Risk Insurance in North Carolina: Coverage for Inland and Coastal Construction

Note: Distinguished Programs no longer offers Builder’s Risk or Vacant Building insurance. Explore our other programs for tailored solutions.

North Carolina offers great attractions like the Great Smoky Mountains, historic cities, and lovely beaches. It’s also home to some of the fastest-growing areas. As cities expand, it’s crucial that your commercial and residential clients are insured during construction. Builder’s Risk Insurance in North Carolina is essential, especially when your clients are building near the coast or in busy urban areas. In this article, we’ll explore why Builder’s Risk Insurance matters in North Carolina and how Distinguished can provide maximum protection for your clients.

Policy Limits Available in Our Coastal Builder’s Risk Program

Although the insurance industry is increasingly shying away from writing new builds and remodels along the coast, at Distinguished Programs, we are happy to provide Coastal Builder’s Risk property insurance in North Carolina. Coverage is available for properties in the Barrier Islands and other coastal communities. We write both residential and commercial properties.

Coverage is provided by Palomar Insurance and is on top-tier A-rated paper.

For new non-frame construction, we offer limits up to $20 million, and for frame construction, we can write up to $6.5 million in limits. In our Remodeler’s program, we can insure properties up to $5 million for all construction types.

Coverage can be written for three, six, nine, or 12 months, or for a longer period of time. Project delays may require an extension to the policy term.

What’s Covered in Our Coastal Builder’s Risk Program?

Our program includes the following coverages:

• Property Damage: This includes damage to the building or materials during construction or remodeling from storms, fires, and other natural disasters.
• Vandalism: Any destruction of property caused by outside parties.
• Theft: Covers the cost of replacing stolen equipment.
• Damage to On-site Structures and Off-site Property in Transit: On-site structures like scaffolding and materials in transit to the site are insured if a covered peril damages them.
• Debris and Pollutant Removal: Provides coverage for the cost of cleaning up debris and pollutants after a covered incident.
• Sewer and Drain Backup: For damage caused by contaminated water from backed-up sewers or drains.
• Trees and Shrubs: Covers damages to any trees or shrubs installed on the property.
• Fungus: Covers costs related to cleanup and disposal of fungus caused by a covered event. 

Named-Storm Deductible Included

Our Coastal Builder’s Risk program in North Carolina includes a named-storm deductible, which applies to damage from a National Weather Service (NWS) or National Hurricane Center (NHC) declared hurricane. So, if a declared hurricane causes damage to a building under construction or during remodeling, our program will provide coverage up to the policy amount, less the deductible. The deductible is a percentage of the property’s value. By including a named-storm deductible, we can keep our program competitively priced for insureds.

Important Considerations

In speaking with clients, ensure they understand the critical need for their property to be insured to value. In addition, make sure the betterments value for new construction and remodels adequately reflects the scope of work. The last thing you want is for a client to be underinsured.

Also, review the policy details with clients and ensure that they understand exactly what is and isn’t covered. Go over policy exclusions carefully. Typical exclusions include intentional damage, ordinary wear and tear, manufacturing defects or flaws in workmanship or design, acts of terrorism, nuclear risks, and war or military action.

How Much Coverage Do Your Clients Need?

Several factors go into how Coastal Builder’s Risk insurance is calculated, including the cost of the project, property value, construction type, the extent of the property covered (including off-site storage locations and property in transit), geographic location, and policy term, limits, and deductibles.

Loss Mitigation

Speak with clients about securing and properly storing property, materials, and equipment before a weather event. Inspect the site often prior to and after a storm so that actions can be taken quickly to prevent and mitigate losses. For example, inspect a property immediately after loss to prevent mold and other issues due to flood damage.

Why Distinguished?

As weather events become more frequent and severe, it’s important to have a partner like Distinguished to help you insure properties in coastal areas. According to the National Oceanic and Atmospheric Administration (NOAA), we’ve already seen a record number of billion-dollar weather and climate disasters in 2023.

In addition to offering Coastal Builder’s Risk insurance in North Carolina, we also offer our program for residential and commercial properties in Alabama, Delaware, Georgia, Maryland, Missouri, New Jersey, Rhode Island, South Carolina, and Virginia. In Texas, our Coastal program is available for commercial-only properties.

If you have a client who needs to get a Builder’s Risk insurance quote for their coastal property in the areas where we offer our program, simply register your agency and submit your application online. One of our experts will get back to you with a quote in 24-48 hours.

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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.

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