Building Restoration and
Remodeling contracting firms face more or less the same liability risks with fixer-uppers
as do companies involved in ground-up
building construction projects.
It does not matter if the job
involves basic remodeling or major structural changes to a customer’s home or a
client’s commercial facility - Commercial Remodeling Builders Risk Insurance safeguards your company’s business
interests by providing extra liability coverage (during the course of
remodeling) that goes beyond a standard property insurance or home owner’s policy.
This policy is typically written
on Inland Marine form and extends coverage not only to property at jobsites but
to off-site storage locations and in transit.
What is Commercial Remodeling Builders Risk?
Commercial Remodeling Builders Risk is a specialized property and liability package that protects contractors and owners during renovation projects. It typically covers damage to work in progress, materials on-site or stored off-site, and transportation-related losses. The form is commonly written on an Inland Marine basis to address the unique exposures of remodeling and restoration work.
Who needs it
Contractors, general remodelers, restoration firms, property managers and commercial owners involved in remodeling projects commonly secure this coverage. Small contractors and specialty trades can benefit just as much as larger firms because projects create job-site hazards, transportation risks for materials, and potential commercial auto exposure when equipment is moved between sites.
What it typically covers
Coverage components often include property coverage for materials and structures, equipment coverage for tools and rented machinery, and limited liability extensions while work is underway. It can also include coverage for off-site storage and transit losses, and may coordinate with a contractor’s general liability to address third-party injury or property damage arising from remodeling activities. For related liability programs tailored to remodelers, see General Liability Insurance Program for Remodeling Contractors — Novatae Risk Group and storefront resources like Remodeling General Liability.
Common exclusions or limitations
Standard exclusions can include wear-and-tear, faulty workmanship (unless covered by an endorsement), contractual liability beyond policy terms, and certain pollution or mold losses. Policies may also limit coverage for property left unattended or for specific high-value items unless scheduled. Underwriting factors and specific endorsements will determine if additional coverages are available.
Factors that influence cost
Premiums are influenced by project size and duration, the value of materials and equipment, the scope of structural work, previous claims history, and the contractor’s risk-management practices. Transportation frequency and whether work involves occupied buildings or public access (increasing spectator or tenant injury exposure) will also affect pricing and available limits.
Proof of insurance & compliance
Owners and general contractors often require certificates of insurance and specific endorsements (additional insured, waiver of subrogation) before work begins. Having documented risk management procedures, clear contracts, and schedules of high-value equipment makes issuing compliant proof of insurance smoother.
How to get a quote
Gather basic project details—location, estimated values for work-in-progress and equipment, project timeline and scope—and discuss them with an insurer or broker. For specialized builder’s risk aimed at remodeling projects, you can compare options such as the Remodeling Builders Risk product and contractor-focused resources like Contractor insurance and risk management for remodelers. To start the process, you can request a quote.
Risk scenario example: a delivery truck damaged stored materials in transit—transit coverage on an Inland Marine form can respond where a standard property policy might not.
Frequently Asked Questions
Does builders risk replace general liability?
No. Builders risk focuses on property (work in progress, materials, equipment) while general liability covers third-party bodily injury and property damage resulting from operations. Both are often used together.
Can I get coverage for off-site storage?
Yes. Many Inland Marine builders risk forms extend to off-site storage and transit, but limits and conditions vary—schedule high-value materials if needed.
Will faulty workmanship always be covered?
Faulty workmanship is frequently excluded; however, some endorsements or warranties can address limited circumstances. Review policy exclusions and endorsements with your broker.
Still have questions? Talk to a local insurance expert.