Builder’s Risk Insurance Coverage provides temporary property insurance to protect a construction project while it is under construction against all perils that are not specifically excluded on their policy. Coverage starts on the day the materials are delivered to the job site and usually ends when the job is accepted as complete by the owner or occupant.
The quality of Builders’ Risk coverage varies greatly by insurance company and agents should insist that an owner’s policy cover theft of building materials before they are permanently attached, collapse, and reasonable profit. Also, we recommend that a separate flood policy for all areas susceptible to flooding. We strongly recommended that owners take out a Builders’ Risk policy on a job instead of leaving it up to the owner of the building. If you leave it up to the owner of the project, they may forget to take it out or they may buy a policy with inadequate coverage.
Property Insurance for Contractors
Property Insurance for contractors covers your (business owned) buildings, office equipment, building materials, tools, and equipment against loss by fire, windstorm, theft, vandalism, etc.
This policy only provides coverage if the loss occurs on your scheduled premises. Therefore, you must make separate arrangements to get protection for off premises losses to your equipment by purchasing an Equipment Floater and losses to your work in progress by purchasing an Installation Floater (Trade Contractors) or Builders Risk policy (Home Builders and Remodelers).