Builders Risk Insurance is an important coverage that property owners, contractors and developers of new construction projects, both residential and commercial, must consider.

• Ground-up new construction projects can be complicated and risky. When dealing with so many unpredictable factors, project stakeholders have their hands full in trying to keep projects incident-free, on time and within budget.
• While all construction projects carry an element of risk, under construction buildings are more prone to property damage, with structures being exposed to unpredictable or extreme weather conditions during the different stages of construction.
• In-spite of securing site access, theft, vandalism and other unauthorized entry can lead to loss of property, materials and equipment that can disrupt operations and impede progress.

New Residential Construction Builders Risk Insurance is a property insurance product that safeguards the interests of owners, contractors and sub-contractors involved in the project.

This type of coverage is designed to protect structures in progress, including materials, tools, and on-site equipment, from unexpected events like fire, storm damage, or theft. Since construction sites often face unique job-site hazards, including exposure to the elements, transportation risks, and equipment breakdowns, having appropriate property coverage is a critical part of risk management planning.

Homebuilders, developers, general contractors, and even some residential lift manufacturers may all benefit from this policy. In fact, specialized coverage options can be found for different types of construction operations, including Residential Lift Manufacturers Builders Risk Insurance, which addresses niche exposures.

New residential construction often involves subcontractors, delivery of high-value materials, and use of rented equipment. A typical risk scenario might include a partially constructed home being damaged by high winds before the roof is installed—Builders Risk Insurance helps cover these types of losses.

Coverage varies by policy, but usually includes protection for the building under construction, temporary structures, construction materials in transit or storage, and sometimes debris removal. Optional endorsements may address soft costs such as delay expenses or loss of rental income.

While Builders Risk Insurance is comprehensive, it typically excludes general liability exposures, faulty workmanship, and wear and tear. Commercial liability coverage may be needed separately to address bodily injury or third-party property damage.

Insurers consider several underwriting factors when determining premium: total project value, duration of construction, geographic location, and types of materials used. Risk mitigation steps like site security and fire prevention systems may also influence cost.

Proof of insurance is often required by lenders and municipal building authorities before construction begins. This ensures financial protection during the project and helps demonstrate compliance with contractual obligations.

To explore the right Builders Risk policy for your project and get a streamlined quote, visit our Builders Risk Insurance quote page.

Related Topic/Coverage - Builders Risk Personal Insurance

For broader commercial projects, you may also consider Residential and Commercial Developers Insurance to address additional liability or operational hazards beyond the construction site.