Builder’s Risk Insurance: Protecting Your Investment
Building a commercial structure means taking on risk. Unforeseen incidents like fires, natural disasters, or vandalism can destroy or greatly damage property under construction. For that reason, construction companies and property owners frequently purchase builder’s risk insurance. A builder’s risk insurance policy protects the policyholder from risks associated with building, renovating or repairing a structure. For example, the costs associated with building materials and equipment can be covered by a Builder’s Risk Insurance policy.
When a natural disaster or other unfortunate incident occurs to a property, Builder’s Risk Insurance can provide peace of mind and a financial safety net. However, an insurance company will often deny a legitimate claim in order to maximize their profit made on the insurance policy. When an insurance company wrongfully denies or underpays a claim, the policyholder needs a strong advocate at their side.
Pearson Legal, P.C. knows how to obtain justice for clients whose good faith insurance claims have been wrongfully denied or underpaid. An experienced Builder’s Risk Insurance claims attorney can answer your questions in an initial consultation. After reviewing the circumstances of your case with you, Pearson Legal, P.C. can provide you with specific information and next steps to consider in pursuing legal action against an at-fault insurance company.
What You Need to Know About Builder’s Risk Insurance
Simply put, a Builder’s Risk insurance policy protects a policyholder who is dealing with the risks associated with constructing, renovating or rebuilding a structure. As you undertake a construction project, a laundry list of problems may arise. Natural disasters, fire, vandalism and theft are only a handful of the issues which may arise on a job site. Poor workmanship, construction delays and other financial risks may also be covered by a Builder’s Risk policy.
Keep in mind that an insurance policy covering Builder’s Risk typically covers only new construction costs. For a construction project on an existing structure, only newly repaired or renovated segments will be insurable. Likewise, the value of a new construction component of a project is usually covered whereas damage to the original structure is likely excluded from Builder’s Risk coverage.
Just as with other types of property insurance, the limits and coverages of your Builder’s Risk insurance policy are defined within the agreement itself, so any loss or damage which occurs outside of policy provisions will not be covered. This places added emphasis on negotiating the terms of your Builder’s Risk insurance policy. If you know that a particular construction project carries with it a specific risk or peril, then it is crucial to attempt to have that risk included within your policy, especially if insurers do not typically cover that particular risk item. Examples of risk items not usually covered in a Builder’s Risk insurance policy include additional costs due to project delays and items such as fencing, walkways, and swimming pools which are external to the structure under construction.
Reasons for Insurance Claim Denials
When an insurance company informs you that your damages are not covered under the terms of your Builder’s Risk insurance policy, you should confirm whether that is accurate. An insurance company may attempt to interpret confusing or vague policy language against coverage. The trouble with any insurance claim is that the difference between an approved and denied claim often lies in those small details of the policy. This leaves you in a precarious and vulnerable position. Providing evidence that the damages in question are covered by a specific provision in your policy is crucial to your success. An experienced Builder’s Risk insurance attorney can provide guidance in a difficult time.
Pearson Legal, P.C. understands that taking on the risk of a building project is something that builders and business owners do every day. However, a Builder’s Risk insurance policy is designed to protect those who undertake construction or renovation projects. If you are in a position where a project of yours took a turn for the worse due to a natural disaster or other problem, it is time to take action. Contact Pearson Legal, P.C. for a consultation today.
How to Prove Your Claim was Wrongfully Denied
Giving up when your insurance claim is wrongfully denied or underpaid is not a smart, long-term strategy. With so much tied up in a major construction or renovation project, you may be wondering about the best next step to take to address a wrongfully denied Builder’s Risk claim. Pearson Legal, P.C. can help you navigate the complex stages of holding an insurance company responsible for wrongfully denying your claim. The law behind insurance policies is complex and written in a way that even experienced builders and sophisticated business owners may not understand every detail.
When the insurance company who issued the Builder’s Risk policy intentionally fails to live up to their end of the insurance policy then they have acted in bad faith. In that situation, you may file a breach of contract and/or bad faith lawsuit against your insurance company who wrongfully denied your claim. Pursuing coverage may mean filing a lawsuit, but many controversies can be resolved without a trial. With multiple options, it is critical that you obtain the best information to enable you to determine the best course of action.
To make matters more complicated, your insurance company certainly has a team of lawyers waiting to defend their decisions in court if necessary. Of course, a trial is the last resort in recovering your rightful insurance coverage. Instead, hiring an experienced insurance attorney with Pearson Legal, P.C. increases the likelihood of settling your case before going to court. Preparation, knowledge of the law and an eye for detail gives our law firm an edge over the competition. Finally, when your case requires a trial for a just outcome, Pearson Legal, P.C. does not back down. Our team of legal professionals has a record of success obtaining superior compensation in the courtroom.
Moving Forward with Confidence: Working with Pearson Legal, P.C.
Construction and renovation jobs are stressful enough. Builder’s Risk insurance claims are not only complex but also time consuming. The skilled team of attorneys at Pearson Legal, P.C. understands the realities of building and constructing. With that in mind, we take seriously the responsibility of representing clients in Builder’s Risk claims denial cases. To learn more about our office and what sets us apart, contact us today. We offer convenient consultations where you can receive feedback about your specific circumstances.
Construction companies and property owners alike have seen tremendous results when employing Pearson Legal, P.C. for their legal needs. Contacting our team of experienced insurance claim denial attorneys means finding peace of mind in a tumultuous and challenging time.