Builders risk insurance protects the project during construction.
Builders risk insurance is a type of first party property insurance coverage for active construction projects. The policy is intended to cover damage to the project itself in addition to materials used in the construction process. Commercial property insurance covers the project once it is completed.
Project Coverage
Builders risk insurance covers damage to a project while under construction. Builders risk insurance is also commonly referred to as course of construction insurance. It insures damage to any physical improvements, not just structures. Covered items can include things such as graded earth or landscaping.
Materials Coverage
Builders risk insurance will typically cover loss of or damage to materials intended to be part of the finished project. A beneficial coverage extension is the availability of insurance for materials while they are in transit to the project site or when they are stored off-site.
Time Element Coverage
Builders risk insurance also may provide coverage for financial losses sustained as a result of a physical damage claim. Claims for project delay costs or loss of future revenue are known as time-element losses and can typically be covered as part of a builders risk insurance policy.
