For insurance buyers, insurance agents and insurance wholesalers!For insurance buyers, insurance agents and insurance wholesalers!

Builder’s Risk Insurance

A gas line explosion...A short circuit that fries electric wiring...Even a lightning strike...Any building site under construction or renovation is highly vulnerable.

Builder's Risk insurance will pay for loss or damage to a structure (and, in some cases, of the materials, fixtures and/or equipment used to build or renovate it) caused by a variety of perils - such as windstorms, hail, theft, and vandalism. The policyholder can also extend coverage to include;
  • Property in transit to the job site or stored at a secure offsite location.
  • Scaffolding, construction forms, and temporary structures on the site.
  • Removing debris from covered property.
  • Paying firefighters to save or protect property.
  • Replacing blueprints or construction plans.
As a rule, Builders Risk insurance does not cover losses due to mechanical breakdowns, floods, earthquakes, water damage, or rioting.

These policies are often written for a three month, six month, or 12 month coverage term. If the project is not completed by the end of the initial term, it may be extended in many cases, but usually only one time. Coverage ends when the property is ready for use or occupancy.

The amount of coverage, usually based on the project budget, should reflect the total completed value of the structure (including costs of materials and labor), but not the value of the land. Depending on the circumstances, either the building contractor, developer, or owner(s) can buy Builders Risk. If a bank issues a construction loan, it will usually require the borrower to purchase a policy. In many cases, showing proof of insurance might be mandatory under city, county and state building codes
Need insurance for You, Your Family or Your Business?
We can match you to a qualified, local insurance expert!
Get A Quote
Further Reading
Just as one might use a CPA to prepare their income taxes or an attorney to help them with their estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need pr...
Your business insurance value has no relation to your policy premium or your policy premiums, the value of your insurance portfolio related directly to the risks you insure against. If you are not an insurance expert, it is important for you to meet ...
While a construction project is underway, who should be responsible for the Property insurance on it -- the project owner or the general contractor? Often, the contract puts this responsibility on the owner. However, some courts have decided that the...
Your last newsletter discussed the benefits of Building Ordinance insurance. If you're planning to build on your property or adding to an existing structure, a related policy - Builders Risk - can protect you from losses during construction, helpin...
Builder’s Risk insurance, also known as Course of Construction insurance, covers property that’s under construction. As a contractor or construction professional, you must understand this important coverage. What is Builder’s Risk Insurance? A ...