Builders Risk Insurance
Builder's Risk Insurance — sometimes called Course of Construction Insurance — is a form of commercial property insurance which covers a building where the insured area is presently being constructed or heavily remodeled. It can cover just the structure, or also the materials on site waiting to be installed or transported to the job site.
What Does Builders Risk Insurance Cover?
The builder's risk policy will pay for damages up to the coverage limit in the policy. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, but not including land value) — the construction budget is the best source for determining the appropriate limit. Policies are often written in 3, 6, or 12-month terms and can usually be extended once if the project runs long.
Covered Events (most policies)
- Fire
- Wind (may be limited in coastal areas)
- Theft
- Lightning
- Hail
- Explosion
- Vandalism
- Vehicles / Aircraft
Standard Exclusions
- Earthquake
- Employee theft
- Water damage
- Weather damage to property in the open
- War
- Government action
- Contract penalty
- Voluntary parting
- Mechanical breakdown
- Faulty design, planning, workmanship, and materials
Earthquake and flood coverage may be available as an add-on in some areas.