Builders Risk Insurance

It’s coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment to be installed during the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.

When do builders and owners purchase builders risk?

Builders risk policies are time sensitive. Most policies are purchased prior to or on the date of construction when the contract is finalized, which means you’ll need to act promptly to obtain a quote and place the order to bind it the effective date you need it.

Who buys builders risk insurance?

Individuals or entities, including contractors, business owners, homeowners, or financial institutions are often the primary buyers of builders risk insurance.

The Builders risk coverage allows for the policy to be purchased in the name of the owner or builder. Contractors and other parties of interest may also be protected under an additional named insured clause.

A Builders risk insurance plan may accommodate a wide range of clients types, including but not limited to:

How do you determine the project value?

Examples of covered costs for total estimated completed value includes but are not limited to:

Changes to the completed value are highly likely to occur during the course of new construction. Because coverage is based on total completed value, any changes that occur during construction to increase the value of the structure should be reported, and the policy should be endorsed to reflect the correct value.

How to choose the right policy?

Whether your construction project is a multi-million dollar commercial renovation, starter home or roof installation, you should obtain a policy that will meet the very specific needs of your project. In general, construction can be categorized into three projects types: new construction, remodeling or installation. The right policy type and coverage offering will vary based on the project type.

How do you select the right coverage for the risk?

Depending on the coverage form, project type and total completed value, you may purchase a number of other endorsements, including flood and earthquake in some states, to expand the already extensive coverage offered on the policy form, subject to underwriting guidelines.

How do you choose a provider?

Choosing an insurance carrier that offers financial stability and reliability is the best place to start. Providers with a proven track record of favorable claim history, sound and consistent underwriting practices, and expertise in construction remain consistent with respect to risk appetite and pricing are proven reliable insurers.

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What do you need to get started?

You can expect to provide the following basic information to begin a builders risk application

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You have a questions?

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