What Is Builders Risk Insurance?
Builders risk insurance is designed to address certain property risks while a building is being constructed or substantially renovated. Coverage varies by policy and project.
What It May Address
Depending on the policy, builders risk commonly considers:
- New construction
- Renovations
- Materials on site
- Property under construction
- Project timelines and coverage period
Who Usually Purchases It
Several audiences commonly need builders risk coverage: property owners, real estate investors, builders, developers and renovators. Who purchases the policy can depend on the project's contracts and structure.
Coverage Period
Builders risk coverage is tied to a project's timeline. Understanding when coverage should start and end — and how it transitions to permanent property insurance — is an important part of planning. Insurance Connections Agency can help you think through that timeline.
Insurance disclaimer: This article is educational and general in nature. Actual coverage depends on the specific policy, its terms, conditions, limits and exclusions. Insurance Connections Agency is an independent agency; carrier availability and coverage vary by state and property.