Insurance TypesBuilders Risk Insurance

Builders Risk Insurance

Specialized coverage for properties under construction or major renovation including structure, materials, and contractor liability.

Key Benefits

Covers property under construction from first dollar of loss

Covers building materials and equipment on site

Protects against weather and environmental damage during construction

Can include contractor liability

Customizable to project length and scope

Ideal For

New construction projects

Major renovation projects

Developers and builders

Large remodeling jobs

Coverage Highlights

  • Building under construction
  • Materials delivered to site
  • Temporary structures
  • Equipment and machinery
  • Completed work awaiting final inspection

Average Cost

$2,000-$5,000/project

Actual costs vary based on property details, location, claims history, and specific coverage limits.

Common Misconceptions

General liability replaces builders risk (they serve different purposes)

Property insurance covers construction (it excludes properties under construction)

All contractors provide coverage (many do not)

Builders risk transfers after occupancy (must transition to permanent policy)

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