If you’re building or remodeling a property, your standard homeowners or commercial insurance may not be enough. You need builder’s risk insurance—a specific type of policy designed for structures under construction.
What Does Builder’s Risk Insurance Cover?
Builder’s risk (also known as course of construction insurance) typically covers:
– The structure itself during the build
– Building materials stored on-site
– Scaffolding, equipment, and fixtures
– Theft or vandalism
– Fire, lightning, or windstorm damage
Who Needs Builder’s Risk Insurance?
This policy can be purchased by:
– Property owners (residential or commercial)
– Builders or contractors
– Flippers and real estate investors
– Developers or HOAs
– Lenders (who may require it before releasing funds)
Why Not Just Use a Homeowners or Property Policy?
Standard property insurance assumes a secured, finished building. It may exclude or limit coverage for:
– Unoccupied buildings
– Open access (no windows or doors)
– Stored materials or incomplete structures
Builder’s risk is specifically designed for:
– Sites where construction is active
– Places where materials are exposed
– Situations with increased theft/vandalism risk
When Should You Start the Policy?
A builder’s risk policy should be:
– In place before construction begins
– Active until the project is completed or occupied
– Coordinated with your GC or contractor’s policies
Some lenders or municipalities require proof of coverage before permits are finalized.
Get the Right Protection for Your Project
At Connor Insurance, we try to help property owners, builders, and investors navigate builder’s risk coverage.
🛡️ Don’t break ground without it—contact us today for a builder’s risk quote.
