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Compare Builder’s Risk Insurance Rates
Learn more about the factors that dictate your builder’s risk insurance rates, compare top insurers, and save.
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What is builder’s risk insurance?
Builder's risk insurance is also called course of construction insurance. It provides coverage for structures under construction for damages related to fire, theft, vandalism, and other risks.
When do businesses need builder’s risk insurance?
Builder's risk insurance covers damage to a construction project caused by weather, fire, vandalism, or theft. If an unexpected event harms the structure or materials on your construction site, this insurance policy pays for the repairs or replacements needed to get the project back on track.
Because of this protection, builder's risk insurance is a key policy for construction and contracting businesses. In fact, your clients might request that you carry this policy before you begin work.
How does builder’s risk insurance work?
Builder’s risk insurance is a type of property insurance that lasts only for the duration of a construction project. The policy usually goes into effect before the first materials arrive at the construction site and it expires as soon as the project is complete. It may be added as an endorsement or purchased as a separate policy.
Who is eligible for builder’s risk insurance?
Anyone with a financial stake in a construction project can purchase builder’s risk insurance to protect their investment from weather, fire, vandalism, or theft. General contractors, subcontractors, and property owners can purchase this insurance policy.
Builder’s risk insurance is usually more important for contractors than property owners, since courts typically hold contractors liable for construction site damage.
What does builder’s risk insurance cover?
Builder’s risk insurance covers the costs of repairing an unfinished structure or replacing building materials when weather, fire, vandalism, or theft hits a construction site.
Structural damage from weather
Builder’s risk insurance covers the cost of damage caused by non-severe weather events, such as wind, rain, and hail.
Fire damage
A fire at a construction site could severely damage building materials or an unfinished structure. Builder’s risk insurance covers the cost of replacing or repairing items damaged by fire.
Vandalism
A vandal can set a construction project back months by breaking windows, destroying fixtures, and spray painting walls. If your construction site is vandalized, builder’s risk insurance can reimburse you for the damage so you can continue working on the project.
On-site theft
Because construction sites are often left unguarded, they are a common target for thieves. Builder’s risk insurance can help compensate you for stolen materials.
Builder’s risk insurance costs
The cost of builder’s risk insurance depends on the total completed value of the structure, not including the land. Relevant factors include:
Materials
Labor
Number of employees
