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Builders Risk Insurance


A property insurance policy that is designed to cover property in the course of construction. Applies also to property at off-site storage locations and in transit. The estimated completed value of the project is used as the limit of insurance. This Builders' Risk program is an inland marine line of coverage designed to provide project-specific insurance for single-family dwellings under construction. Policies can be written in the name of the custom home builder or an owner who is building their own home. Our new Builders Risk program provides project-specific coverage for new homes under construction by a builder or developer during the policy period. If there is a construction loan obtained, the lending institution may require builders risk insurance to protect the funds. Work with your lender or your insurance broker to understand the requirements. Policies can be written in the name of the builder or owner. Building entities must be in business for at least two years. Existing structures and commercial structures are not eligible.


Buildings are subject to many different risks while under construction. A building may catch fire, building materials may be stolen, or an unforeseen natural disaster could strike. That’s where the Builders Risk program comes in. Coverage includes:

  • Theft of building materials
  • Interest of subcontractors
  • Pollutant cleanup/removal
  • Ordinance or law
  • Soft costs
  • Expediting expenses
  • Automatic limits of insurance for numerous exposures
  • Ability to include profit coverage
The Builders’ Risk policy provides coverage for expenses to expedite services. If you experience a loss, the policy will provide an automatic coverage limit of $50,000 to expedite expenses. The policy will pay for reasonable expenses and costs for overtime, night work, express freight, and any work incurred solely to expedite the repair of reconstruction of a covered property that has had a loss. This is an automatic coverage included in the coverage form. You may need coverage for property at a temporary storage location or property in transit. Our policy offers a limit of $100,000 for property at a temporary storage location and a separate limit of $100,000 for property in transit. The broker does not need to issue an endorsement. These coverages are included in the Builders Risk coverage form.


  • Built-in coverage limit of $150,000* for debris removal
  • Built-in coverage limit of $100,000* for property at temporary locations
  • Built-in coverage limit of $100,000* for property in transit
  • Built-in coverage limit of $50,000* for soft cost (i.e. delayed construction penalties)
  • Built-in coverage limit of $5,000 for fungus clean-up
  • Built-in coverage limit of $50,000* for expediting expenses
  • Built-in coverage for theft of building materials
  • Built-in collapse coverage
  • Built-in coverage for back up of sewers, drains, or sumps
  • Loss control resources to help limit risk exposures
  • ordinance or law coverage
  • Coverage for reward paid to parties that aid in the arrest or conviction of persons responsible for arson, theft or vandalism of property
  • Named insured can be owner or builder
  • Occupancy clause of 90 days
  • Claims support provided by product experts
  • Convenient billing options of either broker bill or direct bill.

This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of a typical policy.
Nothing contained herein should be construed as an acknowledgement that a given situation may be covered under a particular policy.