What is builders risk insurance?
Builders risk insurance, also known as course of construction insurance, is a specialized property insurance policy designed to protect buildings and structures throughout the construction, renovation, or repair process. It safeguards against physical loss or damage to the building itself, as well as materials and equipment on-site or in transit. Covered perils typically include fire, theft, vandalism, severe weather events, and more.
Who needs builders risk insurance?
Builders risk is essential for anyone with a financial stake in a construction project. Key stakeholders who typically require this coverage include:
- Property owners and homeowners
- General contractors
What types of projects require builders risk insurance?
The types of projects that require builders risk include:
- New construction – building residential or commercial projects from the ground up.
- Remodeling and renovation – projects involving structural or functional changes to existing spaces.
- Installation projects – installation of fixtures or features like cabinets, flooring, or signage.
When should builders risk insurance be purchased?
To ensure comprehensive protection, builders risk insurance should be secured before construction begins. It is especially important to have coverage in place by the time materials are delivered to the site. Early purchase is critical because the policy only covers work and property from the coverage start date onward, leaving any prior work uninsured.
To learn more, email buildersrisk.us@victorinsurance or connect with your business development contact.