Builder’s risk insurance, also known as course of construction insurance, is essential for protecting buildings under construction or major renovation. It covers damage to materials, fixtures, and structures while work is in progress. Whether you’re a contractor, developer, or property owner, builder’s risk insurance helps protect your investment from unexpected events like fire, theft, vandalism, or severe weather during the construction phase.
Get a quote from one of our experts at Bird’s Eye Insurance to determine how much you can save on your builder’s risk insurance. We’ll review various types of coverages that best suit your needs.
Protects the building and on-site materials: Covers the physical structure being built or renovated, along with materials stored on-site or in transit to the project location.
Protects against job site theft and damage: Helps pay for stolen or vandalized materials, tools, and partially completed work.
Covers damage from common natural events: Includes fire, lightning, windstorms, hail, and some types of water damage — depending on your policy’s exclusions.
Optional coverage for damaged machinery: Covers the cost to repair or replace equipment like generators or HVAC units if they break down during the construction process.
Covers expenses from construction delays: Pays for things like permits, architectural fees, loan interest, and marketing if a covered loss delays your project.
Builder’s risk insurance is a must for general contractors, developers, construction firms, house flippers, and property owners involved in new builds or major remodels. In many cases, project owners or lenders require proof of builder’s risk coverage before work begins. Whether it’s a commercial office, apartment complex, or residential property, this policy helps protect your project from start to finish.
Before selecting a policy, clearly define the size, type, and duration of the construction project. Policies are often time-sensitive, so aligning coverage dates with your construction schedule is crucial to avoid gaps in protection.
Builder’s risk policies vary greatly in what they cover, from fire and theft to vandalism and weather-related damage. Make sure to review any exclusions carefully so you’re not left exposed to common risks in your area or industry.
Set coverage limits based on the full completed value of the project, including materials, labor, and overhead costs. You can also add policy extensions to cover items like scaffolding, construction documents, and temporary structures if needed.
Builder’s risk insurance protects buildings and structures under construction. It typically covers damage from fire, theft, vandalism, weather events, and accidents involving construction materials or equipment. Policies can also include coverage for soft costs, such as permit fees or delayed income due to project interruptions.
Contractors, property owners, developers, and even subcontractors involved in new builds or major renovations should consider builder’s risk insurance. Most lenders and project owners require this coverage before work begins to protect their investment throughout the construction process.
Builder’s risk insurance is designed to be temporary and usually lasts for the duration of the construction project. Coverage typically ends when the project is completed, occupied, or once a certificate of occupancy is issued, though extensions can be arranged if the project is delayed.
Most builder’s risk policies do not cover liability for workplace injuries, faulty workmanship, wear and tear, or employee theft. It also won’t cover tools, equipment not permanently installed, or damages that occur after construction is complete. Additional policies may be needed for full protection.
The cost of builder’s risk insurance depends on the project’s total construction value, location, construction type, and duration. On average, premiums range from 1% to 5% of the total project cost. Working with an experienced insurance agent helps ensure you get adequate coverage at the best rate.
