Structure under construction
The building itself as it is built, up to the completed value of the project.
Business Insurance
Builders risk for the build in progress.
A property policy covers a finished building. Builders risk covers one that does not exist yet — the structure as it goes up, and the materials waiting to become part of it.
Builders risk, sometimes called course of construction, is a temporary policy that covers a project while it is being built. It runs for the length of the job rather than a policy year, and it ends when the building is finished and occupied — at which point a permanent property policy takes over. The gap between those two is a common and expensive oversight.
What the policy actually covers
The structure itself as work progresses, and usually the materials, fixtures and equipment intended to become part of it. Good forms extend that to materials stored off site and in transit, which matters when a delivery is stolen from a yard rather than from the job.
Fire, wind, hail, vandalism and theft are the typical perils. Theft of materials in particular is a live issue on open sites in North Texas, and the sub-limits for it vary considerably between carriers.
Getting the limit and the term right
The limit should reflect the completed value of the project — total construction cost, not the value of work done so far. Underinsuring against completed value can trigger coinsurance and reduce a partial claim.
The term needs to cover the whole build with room to spare. Construction runs late; a policy that expires before the certificate of occupancy leaves the most valuable version of the structure uninsured. Extensions are usually available but easier to arrange before expiry than after.
What it covers
The parts of a builders risk insurance policy
Materials on site
Materials, fixtures and equipment waiting to be installed.
Transit and off-site storage
Materials in transit or held in a yard, which many basic forms exclude.
Theft and vandalism
A live exposure on open sites. Check the sub-limit rather than assuming the full limit applies.
Soft costs
Interest, fees and permits incurred because of a covered delay. Available on many forms by endorsement.
Existing structure
For renovations, cover for the part of the building that was already there.
Working with us
What we do differently
We are an independent agency, so we place your builders risk insurance across several carriers rather than fitting you to one company's product. That means a genuine comparison, and someone to call who is not a call centre.
- Insure to completed value, not to work in place
- Set the term longer than the programme — construction overruns
- Confirm theft and off-site storage sub-limits before materials arrive
- Arrange the permanent property policy before occupancy, not after
Common questions
Builders Risk Insurance, answered
Who buys builders risk — the owner or the contractor?
Either, and the contract usually says which. What matters is that it is bought once, that every interested party is named, and that everyone knows who is responsible for the deductible. Ambiguity here causes disputes at claim time.
How long does a builders risk policy last?
It is written for the term of the project rather than a policy year, commonly six, twelve or eighteen months. Build in contingency — extending before expiry is straightforward, reinstating after a lapse is not.
Does it cover renovation work?
Yes, and for a renovation you also need to consider the existing structure, which a basic builders risk form may not include. Tell us the scope and we will make sure both parts are covered.
Is theft of materials covered?
Usually, but often with a sub-limit well below the policy limit, and sometimes with conditions about site security. Worth checking specifically, because material theft is one of the most common claims on open sites.
When does builders risk end?
Typically at completion, occupancy, or when the property is put to its intended use — whichever comes first. A permanent commercial property or homeowners policy needs to be in force from that moment.
Related cover
Often arranged alongside this
Construction Insurance
A construction business needs several policies that have to work together. Buying them separately is how gaps appear between them.
Read moreContractor Insurance
Most contractors do not buy insurance because they want it. They buy it because a general contractor, a client or a city will not let them start without a certificate.
Read moreCommercial Property Insurance
Property cover repairs the building and replaces the contents. Business interruption replaces what you could not earn while that happened — and it is usually the larger number.
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