A building under construction is exposed in ways a finished building isn’t: open walls, materials sitting on site, temporary power, and no one there at night. Builders risk insures the project itself against fire, wind, theft of materials, vandalism, and other covered causes of loss while it’s being built.
Policies are usually written for the length of the project. Either the owner or the contractor buys it, depending on the contract. We write builders risk for new homes, commercial buildings, and renovation projects, including Gulf Coast projects where wind coverage takes extra care.
What Builders Risk typically covers
- The structure under construction. The building itself as it goes up, usually insured for the completed value of the project.
- Materials and supplies. Lumber, fixtures, and equipment to be installed, on site, in transit, or in temporary storage.
- Theft and vandalism. Stolen materials and vandalism, which are common on unoccupied job sites.
- Wind and storm. Windstorm and hail, often with a named-storm deductible in coastal areas.
- Soft costs (optional). Extra interest, permits, and other costs from a covered delay, when added to the policy.
- Renovations and remodels. Existing structure and new work during major renovations, when the policy is written to include them.
Two weeks before drywall goes up on a new coastal home, a tropical storm tears off roof decking and soaks the framing and stacked materials. The builders risk policy pays to replace the damaged work and materials, minus the named-storm deductible, and the project stays financed and on track.
Businesses that commonly carry Builders Risk
- General contractors building homes or commercial buildings
- Property owners and investors building or renovating
- Developers and spec home builders
- Real estate investors doing major renovations or flips
- Remodelers whose contracts require builders risk
- Lenders’ borrowers on construction loans
What it usually does not cover
- Faulty workmanship and design. Poor workmanship, defective materials, and design errors are excluded, although resulting damage may be covered.
- Contractor’s tools and equipment. Tools and equipment you use to build belong on inland marine coverage.
- Liability. Injuries to others on site are general liability claims, and employee injuries belong on workers’ comp.
- Flood and earthquake. Usually excluded unless specifically added. Projects in flood zones need a plan.
- Wear, tear, and mechanical breakdown. Gradual deterioration and breakdown aren’t covered.
- Occupancy and completion. Coverage typically ends when the building is occupied, put to its intended use, or accepted by the owner. Arrange permanent coverage before that.
Independent means we compare — not just quote one company
We write builders risk through our carrier and wholesale partners, including surplus-lines options for coastal, vacant-structure, and larger projects. We’ll coordinate it with your general liability, inland marine, and the permanent property policy the building needs when it’s done.
Tips before you buy
- Insure the full completed value of the project, not just the cost to date.
- Confirm in the contract who buys builders risk: the owner or the contractor.
- Ask about named-storm deductibles and theft conditions, like fencing and locked storage, for coastal or high-theft areas.
- Line up permanent property coverage before the policy ends at occupancy or completion.
Coverage that pairs with Builders Risk
Tools & Equipment (Inland Marine)
Tools, equipment, and property on the move or at job sites.
Learn moreGeneral Liability
Third-party injury, property damage, and advertising injury claims — plus defense costs.
Learn moreCommercial Property
Buildings, equipment, inventory, and lost income after fire, theft, and covered storms.
Learn moreSurety Bonds
License & permit, contract (bid, performance, payment), and commercial bonds.
Learn morePopular with: Contractors & Trades · Real Estate & Property Owners · Short-Term Rental Hosts · All commercial coverage
Builders Risk questions
Who buys builders risk: the owner or the contractor?
Either can, depending on the contract. On many new homes the builder buys it; on renovations and commercial projects the owner often does. Read the contract or send it to us.
How long does a builders risk policy last?
It’s written for the expected length of the project, commonly 3 to 12 months, and can often be extended if the project runs long.
Does builders risk cover renovations?
Yes, policies can be written for renovations and remodels. Coverage for the existing structure needs to be specifically included, so tell us the project scope.
Does builders risk cover theft of tools?
No. Builders risk covers materials and the project itself. Contractor tools and equipment need inland marine coverage.
Does builders risk include wind on the Gulf Coast?
Often yes, with a separate named-storm deductible. Some coastal projects need wind placed separately. We’ll show you exactly how your quote handles it.
We cover your assets
Let’s build the right commercial program
Tell us about your business once. We shop multiple carriers, explain the trade-offs in plain English, and handle certificates, audits, and renewals after you bind.
Educational only — not a policy, quote, or coverage guarantee. Coverage, eligibility, and carrier availability vary by state, class of business, and underwriting. Policy language controls. Talk with a licensed Asshield agent about your situation.