Construction Property Protection

Builder's Risk Insurance

Builder's risk insurance protects the physical structure and materials under construction from fire, weather, theft, and other covered perils — from groundbreaking through substantial completion. We place project-specific builder's risk on all project types, including high-value, coastal, wood-frame, and hard-to-place construction.

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What Builder's Risk Covers

Builder's risk (also called course of construction insurance) is an inland marine policy that covers property in the process of being built. The coverage is typically written on an "all-risk" or "open-perils" basis — meaning it covers all causes of loss except those specifically excluded.

Coverage applies to the structure being built, materials on-site, materials in transit to the site, and materials in temporary off-site storage. As the project progresses and more value is added, the insured value increases to match.

Covered Causes of Loss

Fire, lightning, and explosion
Windstorm and hail
Theft and vandalism
Water damage (accidental discharge)
Collapse during construction
Equipment breakdown affecting insured property
Faulty workmanship (removal and replacement — limited basis)
Business income / soft costs (delay in completion)
Builder's risk insurance for construction projects

Project Types We Cover

Ground-up commercial construction
Residential single-family and multifamily
High-rise and mid-rise construction
Industrial and manufacturing facilities
Tenant improvement build-outs (TI)
Renovation and renovation-over-occupied
Infrastructure: bridges, tunnels, utilities
Wood-frame multifamily — coastal and inland

Optional Coverage Enhancements

Soft Costs / Delay in Completion

Covers additional interest, professional fees, permit costs, and lost rents if a covered loss delays your project completion.

Earthquake and Flood

Standard policies exclude earthquake and flood. Separate endorsements or stand-alone policies are available, especially important for coastal and seismic zone projects.

Testing and Commissioning

Extends coverage through testing, commissioning, and startup — important for industrial plants, data centers, and projects with mechanical/electrical systems.

Builder's Risk FAQ

Who should purchase builder's risk insurance?
Builder's risk is typically purchased by whoever has an insurable interest in the project during construction — usually the project owner or the general contractor. Lenders frequently require it as a loan condition. The policy should cover all parties with an insurable interest: owner, GC, and major subs are typically named or added as additional insureds.
Does builder's risk cover faulty workmanship?
Generally no — builder's risk is a property policy, not a liability policy. However, many policies cover the 'resulting damage' from faulty workmanship: if a sub's bad work causes a collapse or water damage to other parts of the structure, the resulting damage to other property may be covered. The faulty work itself is typically excluded.
What are soft costs and business income coverage?
If a covered loss delays project completion, you incur costs beyond rebuilding: additional interest on construction loans, additional rent on displaced occupants, re-design fees, permit re-approval costs, and lost revenue from delayed opening. Soft cost and business income (delay in completion) coverage reimburses these consequential losses up to a specified limit.
When does a builder's risk policy end?
Builder's risk policies terminate upon the earliest of: project completion and acceptance, first occupancy, the policy expiration date, or property transfer. Projects that run over schedule need a policy extension — we monitor your project timeline and arrange extensions before expiration to prevent gaps.
Can you cover a project that's already under construction?
Yes — mid-project placements are possible. The insured value is typically set at the current value in place plus the contract value of work remaining. Carriers will want to understand why coverage wasn't in place from the start and may inspect the project before binding.

Protect Your Project from Day One

Builder's risk quotes delivered in 24–48 hours. Hard-to-place and high-value projects welcome.

Get a Builder's Risk Quote