Homes Under Construction

(Builder's Risk Insurance)

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What Is Builders’ Risk Insurance? (A.K.A. Course of Construction Insurance)?

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In a well-built nutshell, it’s a policy that will help pay to repair, replace or recover the current value of a construction project, including labor costs, if there’s damage due to a number of causes (pending coverage).

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Is Builders’ Risk Insurance Mandatory?

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If financing is involved, most likely. If not, it’s up to you, but you’d have to have an intervention-worthy gambling addiction to not have it. The stakes are too high-to skip or skimp on coverage.

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Builders’ Risk Insurance for Homeowners

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If you’re constructing a stadium, builders’ risk is a no-brainer, but if it’s a new house or light remodeling, coverage might be trickier. A start-from-scratch home will most likely be a solid “Yes,” but renovations to existing structures will depend on how much value you’re adding to the home. Best ask an agent for suitable options.

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Why Do I Need Builders’ Risk Insurance?

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The act of building anything will always involve an industrial-sized dumpster of bad things that can damage, derail or delay the project. Having the right builders’ risk insurance can keep your structure from crumbling to the ground, so you can finish construction without going bankrupt… or getting yelled at.

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What Does Builders’ Risk Insurance Cover?

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A builders’ risk insurance policy protects a construction project and almost everything that’s part of the process as soon as it’s on location, including the actual structure and even those pungent-smelling porta potties.