Builders Risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction. Builders Risk insurance is coverage that protects a person’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered loss.
This type of policy does not cover accidents and injuries at the workplace and is intended to terminate when the work has been completed and the property is ready for use or occupancy. If you are going to properly set up your policy, coverage should be effective prior to when the materials are delivered to the job site. Coverage ends upon the earlier of closing of the sale, occupancy or the policy expiration date. After Builders Risk coverage expires, due to sale or occupancy, the new owner should take out permanent property insurance on the building such as a home owners policy.
