Builder’s Risk Insurance in Utah: Elevate Your Construction Protection

In 2023, Utah took the top spot for the most new home construction starts, with 11.7 new builds per 1,000 residents. It’s no surprise that the housing market is so hot, as people want to live in Utah, considering the state’s beauty, with its national parks, strong job market, and low crime rate. As new construction projects surge across Utah, ensuring your clients’ protection against unforeseen events becomes paramount.

At Distinguished Programs, we see submissions for luxury new builds, remodels, and state-of-the-art 4,000- to 5,000-square-foot custom homes throughout the state. Our Builder’s Risk program is written on a standard ISO form and ideal for ground-up and remodeling construction for brokers looking to expand their footprint in the Beehive State. In this article, we’ll guide you through the ins and outs of Builder’s Risk Insurance in Utah and the coverage options available.

Ground-up New ConstructionGround-up New Construction
Single Family Home14-unit Apartment Building
Frame Construction, 2,376 sq ft.Frame Construction 22,000 sq ft.
Policy Limits $520,000Policy Limits $6.1M
Premium $700Premium $10,500

What’s Covered with Builder’s Risk Insurance?

Builder’s Risk insurance is specialized Property insurance that protects against financial loss from physical harm caused by a covered peril to buildings and structures during construction or renovations. The policy covers building costs, foundations and underground property, onsite materials, off-site materials in transit, fixtures, equipment, and temporary structures like scaffolding. It protects against fire, lightning, hail, wind, theft, and vandalism, among other perils. In addition to physical damage or loss, a policy can be designed to reimburse an insured for taking protective measures resulting from the damage, such as debris removal and pollutant cleanup.

The policy can cover specific renovations and remodels, like an additional room, a new kitchen or bathroom, or a basement turned apartment for an elderly parent or a returning graduate.

Our Builder’s Risk policy provides limits of up to $25 million, depending on the construction type. Policy terms are 3, 6, 9, or 12 months.

We also provide Vacancy coverage on the policy term should there be a delay of up to 45 days to start the project. On the back end, the insured will have up to 90 days of coverage if the building remains vacant before sale or occupancy.

We Cover Soft Costs, Too

Beyond covering the building and structures, our Builder’s Risk policy in Utah can be designed to cover soft costs in the event of a loss. Soft costs are reasonable and necessary expenses incurred during the construction, erection, or fabrication of a building/structure that are in addition to the costs that would have been incurred if there had been no direct physical loss. For example, this could include advertising and design fees, professional fees, lease administration expenses, and additional real estate taxes and assessments incurred when construction is delayed.

Cover Liability Risks with Distinguished’s Builder’s Risk Program

In addition to covering property exposures, we also provide Liability coverage of up to $1 million/$2 million as long as the named insured is the owner, trust, or lender – not the GC or developer.

Insuring ADUs in Utah

ADUs (accessory dwelling units) are gaining popularity across Utah – from Salt Lake City to Orem, Draper, and Lindon. The ADUs are built to get rental income or as a cozy granny flat or a modern mother-in-law apartment.

Salt Lake City, for example, last year passed ordinance changes to its law for accessory dwelling units. Homeowners can build internal ADUs within the same building and detached structures outside the single-family home. The ordinance change also allows ADUs to be bigger and taller, regardless of the size of the existing home on the lot.

Provide property coverage for ADUs with a Builder’s Risk policy for ground-up construction and renovations to the home. While a Homeowners policy may provide some protection if a house is damaged in a covered loss during renovation work, most policies typically exclude coverage if the home is unoccupied or the renovations exceed a certain amount.

We Made Getting Coverage Easy with Our Online Portal

You can get your client a quote using our online portal. Simply register your brokerage, go to our Broker Portal, and spend a couple of minutes adding in the insured’s details, and we’ll get back to you with a quote. If your clients like what they see, you can bind the policy right there through the same online portal.

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 & Builder’s Risk, Community Associations, 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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