Building a home, hotel, office, or apartment project in Denver or anywhere in Colorado can be exciting. But construction projects can also face big problems. Hailstorms, snow, wind, theft, fire, and water damage can happen before the job is finished.
That is why many owners, developers, and construction professional teams buy Builder’s Risk Insurance.
This type of insurance policy is meant to protect property under construction. But many people are shocked when the insurance company delays, underpays, or denies the claim.
At Vargas Gonzalez Delombard, LLP, we fight insurance companies when they do not treat policyholders fairly.
What Is Builder’s Risk Insurance?
Builder’s Risk Insurance is a special type of insurance coverage for buildings under construction. It is often considered a project-specific risk policy designed to protect against losses during the build.
It may help cover damage to:
- The building being built
- Materials on-site
- Materials being delivered
- Temporary structures
- Some tools or equipment
- Repair costs after covered damage
This coverage usually lasts only during construction and may end once the project is complete or occupied.
Why Colorado Projects Need Extra Protection
Colorado construction sites face unique risks because of weather, elevation, and changing job-site conditions.
Common risks include:
- Hailstorms that damage roofs, windows, and siding
- Heavy snow that causes collapse or delays
- Strong winds that damage framing or materials
- Wildfires in some areas
- Theft or vandalism at open job sites
- Water intrusion from sudden freezes or storms
One storm can create major delays and large repair bills for a general contractor, owner, or developer.
Common Builder’s Risk Claim Problems
Many people expect their insurance company to help right away. Sadly, that does not always happen.
We often see claims denied or delayed because the insurer says:
- Damage was caused by faulty workmanship
- The loss is excluded in the insurance policy
- Materials were not stored correctly
- The project was already completed
- Notice was given too late
- Repairs cost less than claimed
Sometimes insurers also try to shift blame toward professional liability insurance issues or alleged defect claims instead of paying the covered property loss.
Sometimes these excuses are wrong.
Low Offers Can Hurt Your Project
Insurance companies may offer less than what it really costs to fix the damage.
That can leave owners and contractors paying out of pocket for:
- Labor
- Materials
- Code upgrades
- Cleanup
- Delay costs
- Lost income
A low payment can slow down or stop a project.
What To Do After Damage Happens
If your project suffers damage, act fast.
1. Protect the Property
Try to stop more damage if it is safe.
2. Take Photos and Videos
Document everything.
3. Save Receipts and Records
Keep invoices, contracts, and repair estimates.
4. Report the Claim Quickly
Do not wait too long.
5. Speak With a Lawyer
If the insurance company delays, denies, or underpays, legal help may be needed.
Colorado Law Protects Policyholders
Insurance companies in Colorado must act fairly. They cannot unreasonably delay or deny valid claims.
When they do, policyholders may have rights under Colorado statutes and in Colorado courts. In some cases, insurers may face claims involving unreasonable delay, denial, or bad faith litigation.
That is why it is important to understand your rights and your available insurance coverage.
How Vargas Gonzalez Delombard, LLP Helps
Vargas Gonzalez Delombard, LLP fights insurance companies for property owners, builders, contractors, and businesses.
We help with:
- Claim denials
- Delayed payments
- Low settlement offers
- Policy disputes
- Bad faith litigation
- Large property losses
- Builder’s Risk claim disputes
- Coverage issues involving title insurance or overlapping policies when relevant
We work to recover the money our clients are owed.
Free Consultation with our Colorado attorneys
If your Builder’s Risk Insurance claim in Denver or anywhere in Colorado was denied, delayed, or underpaid, do not face the insurance company alone.
Contact Vargas Gonzalez Delombard, LLP today for a free consultation.
