Builders Risk Insurance

Property coverage for buildings under construction or renovation until completion.

Overview

It protects the structure, materials, and equipment on site, in transit, or staged nearby. Forms run on completed value basis, requiring the full finished value insured from day one, or reporting basis, with values declared as work progresses. Soft costs such as architect fees and loan interest extend coverage after physical delays, and delay in start up coverage pays lost income from postponed openings. Coverage ends at a stated time, commonly 12 months with extensions, or at occupancy, excluding wear, faulty workmanship itself though resulting damage is covered, employee theft, and flood or earthquake unless added. The owner or general contractor buys it per contract documents, and waivers of subrogation against contractors are customary.