Determining the proper insured value or limit of coverage is critical in both protecting yourself and in not overpaying.
Most Builders Risk policies require the policy limit to be set at the estimated completed value.
Completed value includes not only labor and materials, but also overhead and reasonable profit.
One of the biggest money saving tips is that non repeatable expenses should be excluded from estimated completed value including land cost, real estate commissions, landscaping, impact fees, and architect fees. This one tip alone could save hundreds of dollars of premium every year.