Protection for property under construction

Builders Risk Insurance

Builders Risk Insurance covers a building and the materials, fixtures, and equipment at the job site while it's under construction or renovation, against fire, theft, vandalism, and weather damage, until the project is finished. It's temporary, project-specific coverage: once construction wraps and the property is occupied, it's replaced by a standard commercial property policy.

Who needs Builders Risk?

General contractors managing a construction or renovation project
Property developers building new structures
Business owners renovating or building out their own space
Subcontractors named on the policy for a shared project
Real estate developers building spec properties to sell
Anyone whose lender requires proof of coverage before releasing construction funds

What's covered

The Structure Under Construction

The building itself as it's being built or renovated, up to the value stated in the policy.

Materials & Supplies On-Site

Lumber, fixtures, appliances, and other materials staged at the job site or in transit to it, before they're installed.

Theft & Vandalism

Stolen materials, copper wiring, or fixtures, and damage from vandalism at an unoccupied job site.

Fire & Weather Damage

Damage from fire, wind, hail, or other covered perils while the structure isn't yet weathertight or fully built out.

Temporary Structures

Scaffolding, fencing, and other temporary structures used during construction, often as an add-on.

Soft Costs

Delay-related costs like extra loan interest, permit renewals, and additional design fees when a covered loss pushes back the completion date (often an add-on).

What's not covered

Tools and equipment owned by contractors (covered by inland marine / equipment coverage)
Worker injuries on the job site (covered by Workers' Compensation)
Design errors or faulty plans (covered by Professional Liability)
Third-party bodily injury or property damage claims (covered by General Liability)
The completed structure once construction ends and it's occupied (needs Commercial Property)
Faulty workmanship or defective materials, in most policies

Examples by industry

Health & Beauty

You're mid-buildout on a new spa location when a pipe bursts and soaks the drywall and flooring materials staged on-site; builders risk covers replacing them.

Food & Restaurants

A fire during your restaurant's kitchen renovation destroys the framing and newly delivered equipment; builders risk pays to rebuild and replace it.

Cleaning & Maintenance

Materials staged at a warehouse expansion project are stolen overnight before installation; builders risk reimburses the loss.

Professional Services

A storm damages the partially finished buildout of your new office suite before the roof is sealed; builders risk covers the repair.

Retail & E-commerce

A new storefront under construction is vandalized, and the newly installed fixtures are destroyed; builders risk covers the replacement.

Transportation

A fire breaks out during construction of a new dispatch facility, destroying framing and stored materials; builders risk covers the rebuild.

Technology

A burst pipe during your office buildout ruins the drywall and electrical materials staged for installation; builders risk covers the loss.

Home Services

A general contractor's job site loses its framing lumber and copper wiring to theft overnight; builders risk reimburses the stolen materials.

Creative & Media

A studio under renovation loses its partially built soundproofing and lighting rig to a fire before the buildout is finished; builders risk covers the rebuild.

Real Estate

A developer's new spec property is damaged by a windstorm before the structure is weathertight; builders risk covers the repair.

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Part of the Knack guide

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