What does builders risk insurance cover?

It covers a building under construction or major renovation, and usually the materials for it, against perils like fire, wind, theft, and vandalism during the project. Many policies also cover soft costs such as financing, permits, and lost income caused by a covered delay. It does not cover faulty workmanship itself or the contractors' liability, which sit under other policies.

Why can't my regular property policy handle a renovation?

Because a standard property policy assumes a finished, occupied building, and many forms limit or suspend coverage once a building is under significant renovation or sits vacant for the work. The in-progress period, with exposed structure and stored materials, is exactly what builders risk is designed for and what the standard policy is not.

Who buys the builders risk policy, the owner or the contractor?

Either can, and it should be decided deliberately rather than assumed. On many commercial projects the owner secures it to control the limit, the insured parties, and the lender wording, with contractors named as needed. The key is that someone clearly carries it and that it names the right interests, so a loss is not disputed.

What is completed-value coverage?

A builders risk policy written to insure the building's finished value for the construction term, rather than tracking the value up as work progresses. It is the common approach because it ensures full coverage throughout the project, which is why an accurate completed value and timeline are important to set up front.

Builders Risk Insurance - Vantage Point Risk

Coverage for the building while it is being built or renovated.

A standard property policy is written for a finished, occupied building. The moment you break ground on construction or a major renovation, that policy can leave the project exposed. Builders risk, also called course of construction, is the coverage built for the in-progress period, when materials, labor, and the structure itself are most vulnerable.

Ready for terms? Get a quote. Want to find the gaps first? Compare your coverage.

Builders risk insurance covers a building and its materials during construction or major renovation, against perils like fire, wind, theft, and vandalism, for the period the work is underway. It is distinct from a standard property policy, which generally does not contemplate an in-progress structure, and from general liability, which covers injury and third-party damage rather than the project itself.

Why a standard policy is not enough

An occupied-building property policy assumes a completed, operating structure. During construction or a gut renovation, the risk profile is entirely different: exposed framing, stored materials, on-site equipment, and crews all change the exposure, and many property forms restrict or exclude coverage once a building is under significant renovation or vacant for the work. Builders risk fills that window so a fire or theft mid-project does not become an uninsured loss.

What it covers, and the completed-value basis

Builders risk typically covers the structure under construction, materials on site and sometimes in transit or storage, and often soft costs, the financing, permits, and lost income that pile up when a covered loss delays completion. It is usually written on a completed-value basis, insuring the building's finished value for the policy term, which is why getting that value and the project timeline right matters.

Matching it to the project

The right structure depends on the job: ground-up construction, an addition, or a renovation of an occupied building each call for different terms, and the policy has to align with the lender's construction-loan requirements and the contractors' own coverage. We make sure the builders risk, the permanent property policy, and the liability pieces hand off cleanly so there is no gap when the project finishes and the building goes into service.

Coverage for the building while it is being built or renovated.

Why a standard policy is not enough

What it covers, and the completed-value basis

Matching it to the project

Builders risk insurance, answered.

Is your construction or renovation actually covered?

Keep going.

Ordinance & law

Vacant building insurance

Commercial Property Coverage Review

Coverage for the building while it is being built or renovated.