Builder’s Risk Insurance

Protection for homes and buildings under construction, renovation, or major improvement

Builder’s Risk Insurance provides essential coverage for residential and commercial structures while they are being built, remodeled, or undergoing significant renovation. It protects the project from unexpected losses during construction — ensuring materials, labor, and progress are financially safeguarded until the work is complete.

Whether you’re building a new home, renovating an existing property, or managing a commercial construction project, Builder’s Risk Insurance is the foundation of responsible project management.

Why Builders, Contractors & Property Owners Carry This Coverage

  • Protects the structure during construction — Covers fire, theft, vandalism, weather damage, and more.

  • Covers materials, supplies, and equipment — Whether on‑site, in storage, or in transit.

  • Required by lenders — Most construction loans mandate builder’s risk coverage.

  • Prevents costly delays — Ensures damage doesn’t halt or reverse project progress.

  • Protects financial investment — Labor, materials, and improvements are all insured.

What Builder’s Risk Insurance Covers

1. Structure Under Construction

Covers the building itself during:

  • New construction

  • Renovations

  • Additions

  • Structural improvements

  • Major remodels

Includes protection for:

  • Framing

  • Roofing

  • Foundations

  • Interior build‑out

  • Installed systems (electrical, plumbing, HVAC)

2. Materials, Supplies & Fixtures

Coverage applies to materials:

  • On the job site

  • Stored off‑site

  • In transit to the site

Examples include:

  • Lumber

  • Windows & doors

  • Appliances

  • Flooring

  • Cabinets

  • Plumbing fixtures

  • Electrical components

3. Theft, Vandalism & Fire

Construction sites are vulnerable. Builder’s Risk covers losses from:

  • Theft of materials

  • Vandalism

  • Fire

  • Smoke damage

  • Arson

4. Weather‑Related Damage

Protection from:

  • Wind

  • Hail

  • Lightning

  • Rain

  • Snow

  • Ice

(Excluding flood unless added separately.)

5. Soft Costs (Optional)

Covers financial losses caused by delays, such as:

  • Architectural fees

  • Engineering costs

  • Permit fees

  • Loan interest

  • Legal fees

This is especially valuable for large or complex projects.

6. Temporary Structures

Coverage may include:

  • Scaffolding

  • Fencing

  • Construction forms

  • Temporary buildings

  • Job site trailers

Optional Add‑Ons

Builder’s Risk policies can be enhanced with:

  • Earthquake coverage

  • Flood coverage

  • Ordinance & law coverage

  • Equipment breakdown

  • Contractor’s tools & equipment

  • Debris removal

  • Pollutant cleanup

These endorsements tailor protection to the project’s size, location, and risk profile.

Who Builder’s Risk Insurance Is Ideal For

  • Homeowners building or renovating

  • General contractors

  • Developers

  • Property investors

  • Commercial builders

  • House flippers

  • Custom home builders

  • Multi‑unit construction projects

If a structure is being built or significantly renovated, Builder’s Risk Insurance is essential.

Why It Matters

Construction projects face unique risks — exposed structures, valuable materials, unpredictable weather, and theft. Builder’s Risk Insurance ensures the project stays protected from financial loss, delays, and unexpected setbacks.

It’s a cornerstone of responsible construction planning and project protection.