What is one common way to write a builders risk policy for a single location project?

The completed value basis is a common method for writing a builders risk policy for a single location project because it provides coverage for the completed value of the project at the time of completion. This approach ensures that the policy covers the full value of the structure once it is finished, rather than just covering the costs incurred to date or the estimated value of materials and labor.

Using the completed value basis helps to simplify the underwriting and claims process, as the value is predetermined and does not fluctuate based on ongoing construction costs. This method protects both the insurer and the insured by reducing the risk of underinsurance and ensuring adequate coverage at the time the building is completed.

Other options may present challenges. An estimated value basis might lead to issues if the actual costs exceed the estimated values, potentially leaving the project underinsured. A flat rate without consideration of progress fails to account for the variations in construction costs and progress made, while a progressive approach based on previous project values could be complicated and may not accurately reflect the current risks associated with the specific project at hand. Therefore, the completed value basis is preferred for its clarity and comprehensiveness in protecting the investments involved in a construction project.