Builders Risk insurance is a specially designed policy that will provide coverage for a residential or commercial building during the construction process, including new construction, remodeling, or installations. These polices provide protection for the insured’s interest in materials, fixtures, and/or equipment waiting for installation should these items suffer a physical loss or damage from a covered peril. Keep in mind, these policies are property policies and will not usually include liability coverage.

> Who buys builder risk insurance?
There are several types of people that are eligible and could need a builders risk policy. The following are some examples of who can purchase these types of policies in their name:
- Homeowners / Property Owners
- Builders
- Contractors
- House Flippers
> Builders risk policies are typically available for the following 3 types of projects:
- New Construction: this includes many residential or commercial structures that are built from the ground-up. Some examples would be custom single-family homes, outdoor kitchen/living spaces, in-ground pools, hotels, office buildings, apartments, etc.
- Remodeling: these involve interior and/or exterior changes to an existing building that goes beyond a basic installation. Such as, updating a single room in your home, adding or replacing doors & windows, expanding an office or creating an outdoor patio area at a restaurant.
- Installation: projects that are more limited in capacity than a remodel and include a single installation of a particular fixture or feature within the building. Several examples might include cabinets or flooring in your home, HVAC units, wheelchair ramps to your office, signage outside your business and more.
While this is just the basics, believe it or not builders risk policies are usually very easily and quickly obtained the same day you provide the required information to an insurance professional. Traditionally you will need the following information to get a quote: your (insured’s) information, the builder/contractor information, location/property information and project details.
So, whether you are an individual building your dream home, a business remodeling your office, or the contractor performing the construction, a builders risk policy can be beneficial for you. Coverages and limitations will vary between carriers and the type of project it is important to reach out to an insurance agent to help and guide you in getting the right coverage and protection you need.