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Builders Risk Insurance

The insurance you need during construction of your house

Builders Risk Insurance

Builders risk insurance is a form of property insurance that covers property owners and builders for projects under construction, renovation or repair. It is similar to normal homeowners insurance but designed to provide insurance during the construction of the house.

Builders risk insurance provides coverage for theft and vandalism, for accidental losses, damage, destruction of property for which the insured has an insurable interest. This property can include an entire building or other structure in the course of construction including the building supplies and materials at the job site to be used in the project. The contractor can be named as an additional insured if requested. The contractor's equipment and tools are not covered and should be specifically insured by the contractor.

Builders risk insurance does not cover losses occurring before construction begins or after the completion of construction. The limit of insurance will equal the full value of the project. Where only a limited percentage of the full project may be exposed to a single loss, an appraisal is conducted to update any value changes. Optional insurance coverage can be requested to include "soft costs" such as financial costs which include additional interest expenses, leasing and marketing expenses, legal and accounting expenses, and miscellaneous carrying cost); delayed opening loss of income, should a delay in completion result in loss of revenue.

The builders risk insurance company will need the following to give you a quote.