Builders Risk Insurance

Builders risk insurance may help provide coverage for buildings under construction. This specialized coverage, also called course of construction insurance, can provide the backbone of your risk management program.

Who Needs Builders Risk Insurance?

Companies and individuals with a financial interest in a construction project often rely on builders risk insurance to help protect structures and buildings under construction. A builders risk policy may help financially protect materials and supplies, equipment in transit or on-site, and the structures being built.

Insured entities may include the following:

Lenders
Architects
Subcontractors
Property owners
General contractors

What Coverage Does Builders Risk Insurance Provide?

Builders risk coverage may help protect a construction project from specific types of property damage. It may also help cover certain expenses not directly related to the construction project when property damage causes delays, including the following:

Real estate taxes
Additional loan interest
Lost sales
Rental income

It’s crucial to consider the risks and exposures of your project at each phase of construction. Depending on your needs, your agent may recommend that you purchase broad protection, or they may customize your policy for specific risks.

Builders risk coverage is typically temporary, so your agent will help you understand when your coverage begins and ends. Your policy may provide coverage until one of the following:

The policy expires or is canceled.
The building is put to use.
The building is occupied.

Typical builders risk insurance policies may include exclusions for wear and tear, mechanical breakdowns, damage due to faulty design, and employee theft. Talk with your agent to understand exactly how your coverage works.

How to Find the Right Builders Risk Insurance Policy

Working with an experienced agent to find appropriate builders risk insurance is essential to get the coverage you need at a great rate.