Builder’s Risk 101

What is it?

Simply put, Builder’s Risk Insurance insures a structure while it is under construction.  It can cover ground –up projects, such as residential or commercial construction, as well as remodeling or tenant improvement projects.

Also called Course of Construction insurance, a Builder’s Risk policy protects the insured against physical and/or financial loss.  Construction projects present unique situations and exposures which increase the possibility of physical loss or damage to the structure.

What does it cover?

Builder’s Risk Insurance covers material and labor costs associated with the construction or remodel of a home or building. Construction materials such as lumber, drywall, plumbing & lighting fixtures, HVAC units, and other materials are all prone to damage or loss during construction and the costs & time to replace them can significantly delay or even terminate a project.

Builder’s Risk insurance can be structured to cover Property Damage (construction material, fencing, scaffolding, etc), Theft, Natural & Man-Made Disasters (fire, lightning, explosion, etc) even Soft Costs (architects/engineer fees, interest, insurance costs).  If you’re a Spec Home Builder or Developer, Builders Risk insurance can even be written to provide coverage for your potential Profit if property is damaged or destroyed before completion.

Who needs it & why?

The impact of accidental and unpredictable events can be disastrous to your construction project. Builder’s Risk insurance is meant to get the construction project resumed quickly by providing the finances to replace lost or damaged covered property.

If you are a Homeowner, most Homeowner’s policies do not provide coverage for structures under construction or remodel.

If you are a Spec Home Builder or Developer, most construction lenders require you to carry a Builder’s Risk insurance policy but more importantly, inadequate coverage could mean disaster to your project’s bottom line.

How do I get covered?

Contact Builder’s Shield & Hunter Insurance at 855-95-SHIELD or fill out the short form and we’ll contact you shortly regarding your project.  To expedite your Builder’s Risk quote, please have the Construction Value and Location Address ready.  We look forward to taking care of your insurance needs!


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9029 Park Plaza Dr | Suite 204 | La Mesa CA 91942


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