Builders Risk Insurance That Protects Construction Projects from Groundbreaking to Completion.

What Is Builders Risk Insurance?

Builders risk insurance — also known as course of construction insurance — is a specialized property policy that covers buildings and structures under construction against physical loss or damage. Unlike a standard commercial property policy, which covers completed buildings, builders risk is specifically designed to respond during the construction phase, when a property faces elevated exposure and conventional coverage typically does not apply.

A builders risk policy generally covers the structure itself while under construction, materials and supplies on-site or in transit, temporary structures used during the build, and in some cases, soft costs such as architectural fees, permit costs, and financing expenses if construction is delayed by a covered loss. Covered perils typically include fire, wind, hail, lightning, theft, vandalism, and certain water damage events — though flood and earthquake are usually excluded and require separate coverage.

Builders risk insurance is typically purchased by the property owner, the general contractor, or a developer, depending on the project contract structure. Coverage is generally written for the duration of the construction project and terminates when the building is complete and ready for occupancy. It is commonly required by lenders as a condition of a construction loan. Whether you're building a new home, renovating a commercial space, or managing a large-scale development, a properly structured builders risk policy is an essential part of your construction risk management program.