Builders Risk Insurance Coverage – What Does It Cover?

Builders Risk Insurance Coverage

Builders Risk Insurance is a special type of property insurance that covers buildings and structures under construction, remodeling, or repair. It typically covers perils such as fire, wind, hail, theft, vandalism and other accidental loss or damage to the property.

It’s also important to note that earthquake, flood and hurricane damage are not covered unless the policy has been specifically endorsed to do so. You have to check the area of the property you’re looking to insure, to see if catastrophe coverage is available.

Builders Risk premium generally costs around one to four percent of the construction cost of the project, and depends on what type of insurance you purchased, and what exclusions and limitations are associated with the policy. Also, it does not typically cover liability for accidents and injuries that occur in the workplace. You would need to find stand alone liability insurance coverage, in addition to the Builders Risk coverage, to cover this type of risk.

What Exposures Does It Cover?

Builders risk insurance is designed to protect your construction buildings from loss and damage. Coverage is often bought by the homeowners (property owners), builders, general contractors, development companies, retail companies and school districts. You can learn more regarding Builders Risk here, Building, Renovating or Repairing – Got Your Builders Risk Insurance Coverage?

One thing to remember is that if your construction project involves renovations or additions to an existing building, the owner’s existing property insurance might cover the work under construction, saving you time and money searching for unnecessary coverage. is an online insurance comparison website. We provide you with the latest insurance news and free builders risk insurance coverage quotes to compare.

About Dale Williams

Dale Q. Williams, MBA, is a well-respected financial executive whose experience spans from insurance to investment banking. Dale has first hand underwriting experience through working for one of the largest U.S. based insurance carriers, and advisory experience from working for several bulge-bracket and middle-market investment banks. Dale also received his MBA from University of Chicago Booth School of Business, with concentrations in finance and accounting.