Builder's risk protects the work under construction. Know what it covers before you need it.
In this article
What it covers
Property under construction, materials on site and sometimes in transit or storage.
Who buys it
The contract decides.
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Named insureds
Owner, GC and subcontractors.
Exclusions
Faulty workmanship, wear and some water damage.
Theft
Coverage often has conditions.
Renovations
Existing structures may need special coverage.
Deductibles
Understand who pays them.
Claims
Report fast and document.
Where to start
Check your contract's insurance section and ask your broker for exclusions in plain language.
Common mistakes
Assuming coverage, missing renovation details and late claims.
An example
A storm damaged framing on a house under construction. Because the contractor reported the claim within a day with photos, the claim moved forward quickly.
What to track
Track policy dates, project values, named insureds and claims filed by project.
Questions to ask
Who buys the policy under this contract? Does it cover existing structures? What is the deductible and who pays it?
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Frequently asked questions
Who buys builder's risk insurance?
Either the owner or the contractor, depending on the contract. The contract should state who buys it and who is named on the policy.