A building under construction is uniquely vulnerable – to fire, theft, weather, and vandalism – and a standard property policy won’t cover it. Builders risk insurance protects a project from the ground up until it’s complete.
Key Coverages
- Coverage for the structure under construction, including materials and supplies on site
- Protection against fire, wind, theft, and vandalism during the build
- Coverage for materials in transit or in temporary storage off-site
- Soft cost coverage for delays — additional interest, taxes, and fees caused by a covered loss
- Flexible terms for the length of the project, from a single renovation to ground-up new construction
How It Responds
Example: A storm damages framing and materials at a job site midway through construction. Builders risk coverage pays to repair the damage and replace the ruined materials so the project can get back on schedule, rather than the loss falling on the contractor or owner.
Who Needs This
Contractors, developers, and property owners undertaking new construction, additions, or major renovations.
Frequently Asked Questions
Who should buy the builders risk policy: the owner or contractor?
Either party may be responsible depending on the construction contract and project structure. The contract should clearly establish who obtains the policy and whose interests need protection.
When does builders risk coverage start and end?
Builders risk is designed for the construction period, but exact inception and termination provisions vary. Occupancy, completion, sale, or policy expiration can affect when coverage ends.
Does builders risk cover renovations?
It can. Builders risk is commonly used for ground-up construction, additions, and substantial renovations, but the existing structure and renovation work need to be addressed correctly.