BUILDERS RISK INSURANCE

Protecting construction projects while they’re being built

Builders Risk insurance provides property coverage for buildings and structures while they are under construction or renovation. It is designed to protect against physical loss or damage to a project before it is completed and placed into permanent use.

Construction projects involve significant financial investment — and exposure exists long before the project is finished.

What Builders Risk Insurance Covers

Builders Risk insurance typically provides coverage for:

Buildings Under Construction
Structures, foundations, and materials forming part of the project.

Materials & Supplies
On-site, in transit, or temporarily stored off-site (subject to policy terms).

Temporary Structures
Such as scaffolding, fencing, and job trailers.

Soft Costs (when endorsed)
Additional expenses caused by covered delays, including interest, taxes, or architectural fees.

Losses Caused by Covered Perils
Including fire, wind, theft, vandalism, and certain weather-related events.

Coverage applies during the defined construction period.

What It Does Not Cover

Builders Risk policies commonly exclude:

• Employee theft

• Normal wear and tear

• Faulty workmanship or design (resulting damage may be covered)

• Equipment breakdown

• Flood or earthquake (unless endorsed)

• Delay penalties or contractual fines

Understanding exclusions is critical in construction risk planning.

Who Needs Builders Risk Insurance?

Builders Risk coverage is important for:

• Property owners

• Developers

• General contractors

• Subcontractors

• Real estate investors

• Lenders requiring project protection

Responsibility for coverage should be clearly defined in construction contracts.

How Coverage Is Structured

Builders Risk policies are typically written on a project-specific basis and include:

• Project value limits

• Construction start and completion dates

• Covered locations

• Deductibles

• Optional endorsements for soft costs or delay in completion

Coverage usually ends when the project is completed, occupied, or placed into service.

Real-World Claim Examples

• Fire damages a structure during framing

• Theft of building materials from the job site

• Wind or storm damage during construction

• Vandalism delays project completion

Uninsured losses can quickly derail project budgets and timelines.

Why Proper Placement Matters

Builders Risk coverage varies significantly based on:

• Project type and size

• Construction methods

• Location and weather exposure

• Contractual obligations

• Lender requirements

Poorly structured Builders Risk coverage can lead to disputes, delays, and uncovered losses.

Our Approach

At Cory Washington & Co., we approach Builders Risk coverage as a project management tool — not just a policy. We coordinate with owners, contractors, and lenders to ensure coverage aligns with contractual responsibilities and project timelines.

Strong projects start with strong protection.

Disclaimer

All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.