Builders Risk Insurance

from Pepper, Johnstone & Company

Builders Risk Insurance

Builder’s Risk insures a building under construction and covers the building and building materials that will become a permanent part of the completed structure. The contractor typically purchases the builders risk policy during the construction phase; however, in some instances the property owner purchases the policy depending on the terms of the contract. Builder’s Risk policies can cover new construction or remodeling projects. Coverage usually indemnifies against losses due to fire, vandalism, lightning, wind, and other perils. It usually does not cover earthquake, flood, acts of war, or intentional acts of the owner. Coverage generally terminates when the work has been completed and the property is ready for use or occupancy.

Why You Need Protection

Whether you are the builder or the property owner, you have a vested interest in properly insuring the building and building materials left on site during the construction/remodeling phase. Buildings and building materials left on-site overnight are subject to many different risks. They may catch fire, be damaged by high winds, or fall victim to acts of vandalism or theft. Additionally, a bodily injury loss may occur on the jobsite that in many cases can be covered under the right Builder’s Risk policy.