Builder’s Risk Insurance

Are you a builder, a remodeler or a home owner that is just about to begin construction?

A Builder’s Risk policy covers your financial interests during the course of a construction project until completed. This policy will cover property like building materials and supplies from the time they are delivered to the site until the structure is completed or permanent insurance coverage, as a homeowner’s policy, is in force. Builder’s Risk policies can provide coverage for theft of building materials, materials in transit or at temporary locations, and some landscaping.

A Builder’s Risk insurance policy is issued and, coverage applies when you become legally responsible for the covered property. When materials are delivered to the job site, your builders risk policy starts protecting you. You need to purchase a Builders Risk policy prior to beginning construction.

A builder’s risk policy should be written for the total estimated complete value of the built project. The amount typically is the selling price of the home or building minus the cost of the land. Builders can also include profit with the cost of the building.

Single start “one house at a time” new construction policies are issued on an annual basis and may be renewed. Reporting form policies are used for builders with multiple new home or building starts in a year.

Claims Examples

Home Builder built model home and extended the builders risk policy past the 12 months it took to build the home. The house was vacant and a pipe burst in the bathroom which leaked all over the house causing a $29,367 water damage loss to the home.