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Builders risk insurance helps protect properties under construction.

Builders Risk Insurance - Hands of Architect and Engineer Working on a Blueprint with Model Building and Engineering Tools of Working Site in the Background

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Safeguard your property as the project is being built with builders risk insurance.

Under construction? Then you need builders risk insurance.

Builders risk insurance is effectively a form of property insurance that covers the period while the property is still under construction. It’s possible for the property owners to take out such a policy, though more commonly it’ll be a policy they insist the contractors take out.

What does a builders risk policy cover?

The key areas of coverage are damage caused by events such as fire and hail storms. You’ll also normally be covered for theft, vandalism (though not by your employees), and damage caused by vehicles or aircraft hitting the building. To make sure coverage levels are adequate, policies are often set at a fixed percentage of the total construction budget. You’ll need to check how long the policy runs as it typically won’t allow repeated extensions of the construction timeline.

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Builders Risk
Building or Structures Under Construction Coverage
Risk Factor

Your work-in-progress is a risk in the open. Damage from covered weather, vandalism, or other risks can slow or stop a project.

Solution

Building or Structures Under Construction coverage helps protect against damage to the building or structure being constructed from covered risks.

Materials and Supplies Coverage
Risk Factor

The materials and supplies you have on the job site are vulnerable to risks such as theft, fire, or other types of loss or damage.

Solution

Materials and Supplies coverage pays for the loss of covered materials and supplies used to complete the construction.

Equipment Coverage
Risk Factor

Your tools and equipment are of the utmost importance when building. Losing them to theft or damage could be a major problem.

Solution

Add Equipment coverage to protect valuable construction equipment used to complete the project from damage or other forms of loss.

Temporary Structures
Risk Factor

Weather, accidents, and other risks are potential dangers to temporarily erected structures that help you complete key projects.

Solution

Adding Temporary Structures coverage to your policy covers structures like scaffolding or signs from damage or other forms of loss.

Soft Cost Coverage
Risk Factor

There is often more at stake than what is at the construction site. Damages and delays can affect other parts of your business.

Solution

Soft Cost coverage helps with extra costs such as loan interest, lost sales income, rental income, real estate taxes, and more.

  What types of coverage are included with a builders risk policy?

This policy typically includes coverage for the building itself, general liability, equipment breakdown, as well as ordinance and law.

  Do you need builders risk insurance?

Whether you are the client or the contractor building the project, this is important coverage to have. Property owners, contractors, subcontractors, lenders, and architects will most commonly get this coverage.

Coverages that are not included.

It’s important to be aware of what builders risk insurance doesn’t cover. Unless specifically stated, it won’t cover specific increased risks such as flooding on a beachfront construction or earthquakes near a fault line. It also doesn’t cover injuries suffered by workers, meaning you’ll still need any legally-required workers’ compensation insurance coverage, as well.

If builders risk insurance sounds right for you, contact us today for a quote.

Find Your Coverage

We’re here to help you explore your coverage options.

Request Information

Contact Rue Insurance

Our Hamilton Township, NJ Office

3812 Quakerbridge Road
Hamilton Township, NJ 08619

 800-272-4783 toll-free
 609-586-7474

609-586-3991 fax

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  1. Step 1Fill out the form.
  2. Step 2Review your options with us.
  3. Step 3Get the coverage you need.

Builders Risk Insurance Information Request

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