Coverage for Your Construction Project
Builders Risk Insurance
Protect Your New Build, Remodel or Addition
Builders Risk Insurance protects property and construction materials during a construction or renovation project. Also called “course of construction insurance,” coverage ends when the project is complete.
Because every construction project is unique, each Builder’s Risk policy can be custom-tailored to cover your specific needs.
Builders Risk Insurance FAQ
Builders Risk Insurance is most commonly purchased by landowners and those funding the project, although some contractors purchase it in order to have more control over how each job is insured.
Builder’s Risk Insurance generally covers the owner, the lending institution, the contractors performing the work, and other related parties. In addition to providing coverage for damage to the building itself, most plans also cover temporary constructs, materials, and equipment being used (whether it’s currently on-site or off-site).
Builders Risk Insurance is designed to protect construction sites from loss and damage. While exact coverages and limitations vary between providers, most offer coverage for:
- Theft and vandalism
- Acts of God (weather-related)
- Ordinance and law
- Business income and extra expense
- Construction materials and equipment
The cost of Builders Risk Insurance typically accounts for 1-5% of the total construction budget. Several factors can affect the cost of a policy:
- Location of the project
- Overall size/scope
- Construction timeline
- Square footage of the site
- Quality of materials used
- Expertise and experience of the contractors involved
Any person or company with a financial interest in a property that’s being built or renovated, including:
- Building and property owners
- Architects or engineers
- Contractors or subcontractors
Yes! When multiple parties go in on a construction project together, the general contractor will usually purchase the builder’s risk policy and act as the primary insured. The building owner and subcontractors will be listed as additional insureds. However, depending on the wording of the construction contract, the building owner may have to purchase the policy.