Builder’s Risk Insurance
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Builders’ risk insurance is an insurance policy written and designed specifically to protect and insure a building which is proposed for, or presently under, construction. Builders’ risk insurance may cover any structure and/or materials on the insured building site, some materials on site waiting to be installed or transported to said site. Most builder risk insurance will have an agreed upon coverage limit assessed by the projected value, or construction budget, of the project, including but not limited to, building, materials, equipment, and labor costs needed to build the proposed construction. Most builders’ risk insurance policies will provide coverage for terms of, three, six, or twelve month increments. If the insured project requires additional time for completion and the project supersedes the original agreed policy coverage, the policy can be extended, but in most cases policies are limited to a one time extension.
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