Builder's Risk Insurance

Builder’s Risk Insurance

Protect your assets during building construction.

Why get Builder’s Risk Insurance?

Buildings under construction are a lot more vulnerable to risks than their finished counterparts and require a special type of coverage. Unfinished projects are more susceptible to damage from the elements, and the lack of human presence or lights may lead to an increased risk of vandalism or other crime in the area. Accidents on-site could also result in substantial losses related to building damage. Builder’s risk insurance is designed to protect you from losses associated with these risks. This type of insurance policy is typically purchased by the company that is contracting the work to be done, and is primarily for covering new construction projects rather than construction that modifies or adds on to existing buildings, but there is some flexibility so it’s important to consult an insurance specialist to ensure that you get the right kind of coverage for you.

What are the pros and cons of builder’s risk insurance?

Builder’s risk insurance provides a huge amount of coverage to policyholders. This type of policy is typically written on an all-perils basis, which covers all losses except those specifically listed in the policy. Some of the common exceptions are:

  • Earthquake damage
  • Losses from law or ordinance changes
  • Losses related to nuclear hazards, war, or actions by civil authority
  • Damage beyond the estimated value of construction
  • The value of the actual land
  • Theft by employees

So even though there are exceptions, most of them are by no means typical and are likely to affect your business during a normal construction period.

How long does my builder’s risk policy last?

The length of a builder’s risk insurance policy can vary from project to project. Most policies will end once the building has finished construction, but when exactly that is depends on your policy. Sometimes construction is considered finished before finishing work is done to the inside of the building, and sometimes construction isn’t considered finished until opening day. If the length of your policy is important to you, discuss your options with one of our insurance specialists. We can provide you with the coverage you need for the duration you need.