Building a home or commercial property from the ground up is a significant investment, and protecting that investment before the project is complete requires specialized coverage. Builders risk insurance is designed for exactly that purpose, covering structures under construction against a range of unexpected losses.
What Does Builders Risk Coverage Typically Include?
A standard builders risk policy financially protects the structure being built and other jobsite perils while the work is in progress. Coverage generally applies to:
- The building or structure under construction
- Materials and supplies stored on-site or in transit to the jobsite
- Scaffolding, temporary structures, and construction equipment attached to the building
- Damage caused by fire, lightning, wind, hail, theft, and vandalism
Some policies may be extended to cover soft costs such as architect fees, permit fees, and lost rental income when a covered loss delays the project's completion.
What Does Builders Risk Coverage Exclude?
Builders risk insurance does have notable gaps. Most standard policies do not cover:
- Employee theft or dishonesty
- Earthquake or flood damage, unless added by endorsement
- Contractor tools and equipment in transit
- Damage resulting from faulty workmanship or design errors
- Liability for bodily injury occurring on the jobsite
Separate policies such as contractors insurance or a commercial general liability policy are typically needed for more comprehensive coverage.
Protect Your Project From the Ground Up
Contact Gene Smith Insurance Agency to review your project's needs and find the right coverage for your build. We proudly serve clients in Dade City, FL and surrounding communities, helping protect their livelihoods and homes.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.