Builders Risk Insurance with Simplified Solutions
Did you know your property can be protected even before construction is complete? Builders risk insurance is designed to safeguard your investment during the critical phase when your project is still under construction. From fire and theft to storm damage, this coverage helps protect your building project from unexpected setbacks and financial losses.
Why Builders Risk Insurance Is Essential During Construction
Whether you’re a property owner, developer, or contractor, construction projects face a unique set of risks before they’re finished and fully operational. Builders risk insurance is a specialized form of property insurance that covers buildings and structures in progress—providing protection throughout the construction period. While property owners can purchase this coverage, it’s often required that contractors maintain the policy to ensure all parties are protected.
What Does Builders Risk Insurance Cover?
Builders risk policies generally protect against a wide range of perils that can occur during construction, including:
- Fire and Lightning: Damage caused by fire outbreaks or lightning strikes.
- Weather Events: Hailstorms, wind damage, and other natural forces.
- Theft and Vandalism: Protection from stolen materials or vandalism (excluding employee theft).
- Accidental Damage: Damage caused by vehicles or aircraft crashing into the construction site.
- Debris Removal: Coverage for the costs associated with cleaning up debris after a covered loss.
- Materials in Transit: Some policies also cover building materials while being transported to the site.
Coverage limits are typically set based on a percentage of the total construction budget or the completed value of the project. It’s important to confirm how long the policy is valid, as most builders risk insurance policies have fixed terms aligned with the expected construction timeline and may not allow repeated extensions without reassessment.
What Builders Risk Insurance Does Not Cover
It’s equally important to understand the gaps in builders risk insurance coverage:
- Natural Disasters: Flooding, earthquakes, and other location-specific hazards usually require additional endorsements or separate policies.
- Worker Injuries: Builders risk insurance does not cover injuries to workers on site. You will still need workers’ compensation insurance to meet legal requirements and protect your workforce.
- Faulty Workmanship: Damage caused by poor construction or design errors typically isn’t covered.
- Contractual Liabilities: Liability claims from third parties are not included and require separate liability insurance.
Tailored Builders Risk Insurance for Your Project
Every construction project is unique, and coverage needs can vary widely based on the size, location, and nature of the build. We work closely with you to tailor builders risk insurance policies that fit your project’s specific risks and timeline—ensuring you’re fully protected from groundbreaking to completion.
Don’t leave your construction project vulnerable to unforeseen losses. Contact us today to learn more about builders risk insurance and get a personalized quote designed to keep your project on solid ground.
Frequently Asked Questions
Builder’s risk insurance—also known as course of construction insurance—is a specialized property policy that covers buildings and structures under construction or renovation. It protects against damage from events like fire, theft, vandalism, and certain weather events.
Builder’s risk insurance can be purchased by contractors, property owners, developers, or project managers—essentially anyone with a financial stake in the construction project. It’s often required by lenders and project owners.
It typically covers:
Buildings under construction
Materials, supplies, and equipment on-site or in transit
Temporary structures (e.g., scaffolding)
Soft costs (e.g., permit fees or loan interest due to delays)
Optional endorsements can extend coverage to business income, debris removal, or equipment breakdown.
It usually does not cover:
Employee injuries (covered by workers’ compensation)
Faulty design or workmanship
Normal wear and tear
Equipment or tools (may require separate inland marine coverage)
Earthquake or flood damage (unless added by endorsement)
Coverage typically begins when construction starts and ends when the project is completed or occupied. Policies are usually written for 3, 6, or 12 months, with the option to extend if the project is delayed.
