Builders Risk Insurance simply insures a single residential, commercial, or government construction project. The insured could be the general contractor responsible for the job, or the owner. In most cases, these policies are a requirement of a bank, government, or contractual obligation.

Common Questions About Builders Risk Coverage

Builders Risk Insurance provides coverage primarily for the structure, and in most cases building materials on the job site. Some policies can be endorsed to cover for flood, earthquake, and loss of business income in the event of a loss.

You need to determine who has coverage on the building during the project phase. In most cases, a bank will dictate the requirement for coverage. However, you should be aware who is responsible for coverage of the project during construction. Typically, coverage is required for the borrower.

Builders Risk Insurance usually has a policy term of 6 months. You should be able to purchase up to 24 months if needed.

The cost will depend on the project cost, location, and how long coverage is needed. Residential projects will be less expensive than commercial projects.

Most carriers will require you to purchase directly from an insurance agent. Make sure your agent has all the information about the project to accurately insure the building and construction materials.