Builders Risk Insurance

Builders Risk Insurance

Why It’s Important

When you’re building, remodeling, or installing new parts of a structure, your investment faces risks every day. Builders risk insurance protects the structure, materials, and equipment during construction from damage or loss. It’s designed to give you peace of mind, knowing that unexpected setbacks won’t derail your project or cause major financial strain.

What Builders Risk Insurance Covers

• Property damage – Protection for physical loss or damage to the structure caused by events such as fire, wind, or collapse.

• Theft & vandalism – Coverage if building materials, tools, or parts of the project are stolen or intentionally damaged.

• Materials in transit or temporary storage – Insurance for supplies being transported to the site or stored offsite before installation.

• Debris removal – Helps cover cleanup costs after a covered loss.

• Water backup – Coverage for damage caused by backup of sewers, drains, or sump pumps (if selected).

• Optional endorsements – Additional coverage can be added for things like soft costs (architect fees, interest, lost income from project delays), flood or earthquake protection, or change orders.

What It Does Not Cover

• Liability for injuries or third-party legal claims (separate liability policies are needed).

• Losses caused by poor workmanship, design flaws, or faulty materials.

• Normal wear and tear or equipment breakdown unrelated to a covered peril.

Who Needs Builders Risk Insurance

• Homeowners and property owners completing new construction or major renovations.

• Contractors, developers, and investors who have a financial stake in the project.

• Projects with lenders or contracts that require builders risk insurance before work begins.