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What is Builders Risk Insurance and Do I Need It?

Published by Robert J Stillwell on October 11, 2019


What is Builders Risk Insurance?

The intention of the builders risk insurance is to cover materials, fixtures and/or equipment that are to be installed during the course of a construction or renovation project.  Coverage is provided to an existing structure or a ground-up build.

The intention of the insurance is to protect from physical loss, as well as, property damage which is covered by the policy language. 

Who Buys Builders Risk Insurance?

A developer, residential home builder, general contractor or property owner usually purchases the coverage for their own protection.  Policies can be provided in a commercial or personal name.

When Do Contractors and Owners Purchase Builders Risk Policies?

At the start of the construction or renovation until the project is complete.  Projects usually must be less than 30% complete in order to insure. The coverage is commonly required by a bank or other contractual agreement. 

How Do You Insure the Proper Value of the Project?

To determine the proper value to be insured would include:  the cost of materials, equipment and the value of the completed project. 

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