Builders Risk Insurance

Builders risk insurance is a type of insurance product that provides coverage for property damage and loss during the construction of a building or structure.

Coverage Scope

Property Damage: Builder's Risk Insurance covers damage or loss to the structure and materials of a construction project. This includes protection against risks like fire, theft, vandalism, wind, hail, and other perils specified in the policy.

New Construction and Renovations: It applies to various types of projects, including new construction, renovations, and remodeling, covering both residential and commercial properties.

Temporary Structures: The coverage can extend to temporary structures on the construction site, such as scaffolding, construction trailers, and equipment.

Delay and Soft Costs: Some policies offer coverage for additional expenses incurred due to construction delays caused by covered perils. This can include expenses related to extended financing, leasing, and additional interest costs.


Risk Mitigation: Builder's Risk Insurance helps mitigate the financial risks associated with unexpected events or accidents that could cause damage to a construction project. Without this coverage, property owners and contractors could face significant losses.

Financing Requirements: Lenders and financial institutions often require Builder's Risk Insurance as a condition for providing loans and financing for construction projects, ensuring their investment is protected.

Contractual Obligations: Construction contracts frequently include provisions mandating Builder's Risk Insurance, and non-compliance can lead to contractual disputes.

Project Continuity: In the event of a covered loss, Builder's Risk Insurance enables construction projects to continue without major disruptions, minimizing delays and associated costs.

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