Coverage for property while a project is being built.
Designed for certain physical-loss risks during construction, renovation or major alteration.
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WHAT IT DOES
A policy for the window between breaking ground and handing over.
A finished building sits on a property policy. A half-built one cannot. Builder’s Risk covers the period in between, when the value on site changes weekly.
01
Fire damages work in progress
02
Materials are damaged before installation
03
Water damage affects a partially completed project
04
A covered loss delays completion
A Builder’s Risk policy may respond in each case, subject to its wording, limits, exclusions and conditions.
WHAT IT MAY COVER
Common areas of coverage.
Building Under Construction
The project itself while work is in progress, insured to its completed value.
Materials and Supplies
Materials on site, and where the policy extends to it, materials in transit or in temporary storage.
Temporary Structures
Hoarding, scaffolding, forms and site structures, where the policy includes them.
Equipment Being Installed
Equipment intended to become part of the finished project, once it is on site.
Soft Costs
Where included, certain additional costs such as interest, fees and permits caused by a covered delay.
Debris Removal
Where included, the cost of clearing debris following a covered loss, within the stated limit.
Builder’s Risk is written project by project, and extensions differ. A broker can confirm what a policy includes before work starts.
WHAT IT DOESN’T REPLACE
Builder’s Risk insures the project, not everyone working on it.
It answers for physical loss to the work itself. Liability, the contractor’s own plant and the period after handover are dealt with separately.
Third-party injury or damage arising from the work rather than damage to the work itself.
Wrap-Up Liability
Project-specific liability covering the parties to a construction project, arranged separately.
Contractor Equipment
The contractor’s own tools, plant and machinery, which are not part of the finished project.
The building once the project is complete and occupied, when cover normally transfers.
Financial guarantees of performance and payment, which are not insurance in the usual sense.
Allegations about design or engineering advice rather than physical damage to the work.
These are general distinctions, not a statement of what any policy does. A broker can review the wording with you.
WHO COMMONLY NEEDS IT
The operations that most often arrange Builder’s Risk.
Anyone responsible for a project while it is being built. These are the HIFA industry pages where it comes up most often.
NOT SURE WHERE YOU FIT?
A broker can set the policy up before the first delivery arrives.
Tell us what is being built, what it will be worth and how long it will take. A commercial broker can review the risk and the wording with you before work starts.
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REAL CLAIM EXAMPLES
Two situations worth thinking through in advance.
Fire During Construction
A fire on site damages completed framing and a quantity of materials waiting to be installed.
A Builder’s Risk policy may respond to covered physical loss to the project and to insured materials.
Water Before Completion
Water enters a partially completed building before the envelope is closed and damages finished interior work.
A policy may respond to certain water-damage losses during construction. Whether it does depends on how the water entered, what the wording excludes, and what site protections were in place.
Illustrative example
Illustrative only. These are not a statement of coverage. Every claim is assessed on its own facts against the policy in force.
WHAT AFFECTS THE PRICE
Two projects of the same size can price very differently.
THE PROJECT
Construction type and materials
New build or renovation
Whether the building is occupied during work
Project duration
Location and site security
THE NUMBERS
Total completed value
Requested limits and extensions
Deductible
Fire and theft protection on site
Claims history
A broker can tell you which of these is driving your number, and whether the policy period covers your schedule.
WHAT WE’LL ASK YOU
The questions that change the policy.
01
What is being built or renovated?
02
What is the total completed value?
03
What is the construction type?
04
How long is the project expected to run?
05
Is any part of the building occupied during the work?
06
What fire and theft protections are in place on site?
Common questions
What owners ask about Builder’s Risk.
Who should buy the Builder's Risk policy?
When does Builder's Risk coverage end?
Are soft costs covered?
What if the project takes longer than expected?
Are tools covered under Builder's Risk?
What value should the policy be written for?
READY TO TALK?
Let’s get the project insured before the work starts.
Tell us what is being built, what it will be worth and who the contract says must insure it. A commercial broker can review the risk before approaching insurers.
Want to talk now?