Builders risk insurance, also called course-of-construction coverage, protects a building while it is being built or renovated. It is one of the most misunderstood coverages, because the moment a property becomes a construction site, standard homeowners, landlord, and commercial property policies often stop responding.
What builders risk covers
Builders risk generally covers the structure under construction, the building materials and supplies on site (and often in transit or storage), and the work in progress, against covered causes of loss such as fire, wind, theft, and vandalism. It is built for the unique, temporary risk of an active job site, from a ground-up build to a major renovation or fix-and-flip.
Why standard policies leave a gap
A homeowners or landlord policy is written for a finished, occupied building. Once a property is vacant and under renovation, those policies commonly restrict or exclude coverage, which is exactly the gap builders risk fills. For contractors, it also coordinates with general liability, which covers third-party injury and damage rather than the project itself.
What it usually excludes
Builders risk typically does not cover the contractor’s tools and equipment (that is inland marine or contractors equipment), faulty workmanship itself, or liability for injuries. It is property coverage for the project, not a substitute for liability or workers compensation.
What to do
If you are building or renovating, confirm builders risk is in place before work starts, scoped to the project value and timeline. We can place it for owners or contractors and coordinate it with the permanent coverage that takes over when the project is done.