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Topic starter
Hi, Board members,
We're having a house built on STX and the bank is requiring B.R. insurance as a condition of the loan. Why do we need it if the builder has insurance already? One answer, of course, would be "because it's a condition of the loan" but is there a reasonable reason?
Thanks,
PT
Posted : January 1, 2007 9:54 pm
Hi pt,
This isn't coverage the builder always provides, but is being requested by the bank. I assume you are having the construction financed. Builder's Risk would help cover things like:
Coverage for theft of materials from the moment they’re delivered to the job site.
Protection for materials in-transit and at temporary locations.
Coverage for materials that are installed or uninstalled.
Coverage for losses due to ordinances or laws.
With all the things that could go sideways with an island construction job, it is wise to have this type of covrage.
Posted : January 1, 2007 11:58 pm
just curious--who's your builder? House started yet? (i'm guessing not till you get this insurance...)
Posted : January 2, 2007 11:18 am
Topic starter
Hi, Beachy,
The house isn't started yet. Bank, etc. wants all details just so, which can draw things out when done at a distance. Sorry, can't reveal the builder: just too superstitious about jinxing something. IslandEd's comments were a consolation and a reminder to read the insurance contract beforehand.
Thanks to all,
PT
Posted : January 2, 2007 4:10 pm
WOW! FIrst time anyone said MY comments were a consolation! LOL
Posted : January 2, 2007 7:28 pm