What Is Builder’s Risk Insurance?

For most any business owner, the importance of insurance is undeniable. There are numerous types of insurance policies that go along with business ownership, some of which can vary according to the type of business involved. One such policy – builder’s risk insurance – is one that many recognize the need for, but they’re not sure who’s eligible and just what the policy covers. Here, we will clear up some of the most frequently asked questions about builder’s risk insurance.

First and foremost, what is it? You may also hear it referred to as inland marine coverage or course of construction coverage. It protects an organization’s or person’s insurable interest in equipment, fixtures, and/or materials which – during the renovation or construction of a structure or building – are either waiting to be installed or post installation. The insurance is in place in case the aforementioned items sustain physical damage or loss resulting from a covered circumstance.

Difficulty With Understanding

The thing about builder’s risk insurance is that between providers, policy types and covered exposures differ. In fact, even single provider types of policies can exhibit differences. So, for someone to determine what their clients and they, themselves, can expect from this type of insurance policy, it can be difficult.

Builder’s Risk Insurance – Who Buys It?

For a commercial or residential builder’s risk policy, there are numerous eligible client groups:

  • School districts
  • Retail companies
  • Investment/development companies
  • House flippers
  • Contractors
  • Builders
  • Property owners/homeowners

Available Policies

For three varieties of construction (projects will be classified as either commercial or residential risk), the most typically available builders risk policies are as follows:

  • Installation
  • Remodeling
  • Ground up new construction

From there, between providers, more variants exist for builder’s risk policies. Included in possible policy types are the following:

  • Blanket installation policy
  • Blanket policy (slightly complex)
  • Reporting form (slightly complex)
  • Single project/location-specific (very straightforward)

Builder’s Risk Coverage

From damage and loss, construction sites are protected by specially designed builder’s risk coverage. Between providers, precise limitations and coverages may vary. Builder’s risk policies that are comprehensive may offer coverage for the following:

  • Vandalism and theft
  • Flood
  • Costs
  • Earthquake
  • Windstorm
  • Law and ordinance
  • Extra expense and business income

Possibly also covered by the policy could be damage to the following:

  • Subdivision signs
  • Landscaping
  • Scaffolding
  • Temporary structures
  • Fencing
  • Construction material

Unfortunately, liability for accidents and/or injuries in the workplace are not typically covered by builder’s risk policies. In addition to course of construction coverage, standalone liability insurance may be secured.

Contact Stone Claims Group For Help with Insurance Claims

Maximize your claim recovery with Stone Claims Group. We service high-rises, restaurants, multifamily buildings, strip malls, retail businesses, warehouses, public buildings, and more. Our public insurance adjusters will always fight for fairness. We specialize in commercial claims considered complex by others. Our areas of expertise extend to umpire services (to help settle claim disputes), appraisal services, public adjusting, preliminary inspections, and more.

Got questions? Feel free to check out our FAQ page.

While other insurance adjusters are working for the insurance company, we are putting our efforts toward working for you. At Stone Claims Group, first and foremost in our minds is the policyholder. Remember, we only get paid when you get paid.

Can Stone Claims Group be of assistance to you? Click free claim review or give us a call at 1-800-892-1116 to find out. You can also email us at office@stoneclaims.com.


    Notes (optional): "Please feel free to address anything else (your title, number of buildings, number of stories, number of units, etc.)"