What Does Builders Risk Insurance Cover?
Depending on your policy, builders risk insurance may cover losses caused by fire, theft, vandalism, wind, hail, and other covered events. Protection can include:
- The building under construction: Insured framing, roofing, and other completed portions of the project.
- Materials and supplies: Lumber, wiring, fixtures, and other eligible items intended for installation.
- Permanent equipment: HVAC units and other insured equipment becoming part of the building.
- Transit and off-site storage: Covered materials traveling to the project or stored elsewhere, subject to policy limits.
- Debris removal: Eligible expenses to remove damaged property after a covered loss.
- Certain delay costs: Additional interest, taxes, or other defined expenses when the appropriate coverage is included.
For example, a fire could damage framing and stored lumber before the building is enclosed. Builders risk may help pay for covered repairs and replacement materials, subject to the deductible and policy terms.
Ordinary scheduling delays, material shortages, and cost overruns are not automatically covered.
What Does Builders Risk Insurance Not Cover?
Builders risk covers project property, but it does not replace every insurance policy needed during construction. Important exclusions and limitations to review include:
- Contractor tools and machinery: Equipment used across multiple jobs generally needs separate tools or equipment coverage.
- Employee injuries and liability claims: Workers’ compensation and general liability address different risks.
- Faulty work or design: Correcting defective work may be excluded, while resulting damage depends on the policy.
- Flood, earthquake, and wind: Coverage availability, exclusions, and deductibles vary by location.
- Wear and tear: Routine deterioration and maintenance are generally outside the policy’s protection.
Theft conditions, temporary storage limits, and coverage for existing structures also deserve a closer look. We help you understand these details before you rely on the policy.
Business Insurance Coverages
When Does Builders Risk Coverage Start and End?
Arrange coverage before construction begins and confirm the effective date and any conditions that determine when protection starts.
Coverage may end when the policy expires, construction is completed, or the building is occupied or put to its intended use. The exact triggers depend on the policy.
If your timeline changes, contact your agent before coverage expires. Extensions require insurer approval. Early occupancy, changes in project value, and additional work should also be reviewed, with permanent property insurance coordinated before builders risk ends.
Why Choose ConXis for Builders Risk Insurance?
Your project deserves more than a quote based only on its address and construction budget. ConXis reviews the scope of work, completed construction value, materials, storage arrangements, and lender requirements to help compare available options.
For renovations, we also discuss the existing building and whether anyone will occupy it during construction. If work has already started, tell us the current stage so we can check market eligibility.
Have your project address, estimated construction value, start and completion dates, and insurance requirements ready. We’ll help you understand the coverage differences and take the next step.
Request a Builders Risk Insurance Review →
Related Business Insurance Coverages
Most businesses face risks that require more than one type of insurance coverage. The right combination depends on your employees, property, vehicles, contracts, services, and industry.
- Workers’ Compensation: Helps cover work-related employee injuries and illnesses and may be required depending on your state and business.
- Commercial Auto Insurance: Covers vehicles used for business operations and liability arising from covered auto accidents.
- Commercial Property Insurance: Helps protect buildings, equipment, inventory, and other business property from covered losses.
- Professional Liability Insurance: Protects against certain claims involving professional mistakes, negligence, advice, or services.
- Pollution Liability Insurance: Provides coverage for certain pollution and environmental exposures that general liability policies may exclude.
- Cyber Liability Insurance: Helps address costs and liability associated with data breaches, cyberattacks, and other covered cyber incidents.
- Employment Practices Liability Insurance: Helps protect businesses against certain employment-related claims such as discrimination, harassment, or wrongful termination.
- Commercial Umbrella Insurance: Can provide additional liability limits above certain underlying business insurance policies.
ConXis Insurance Services can review these coverages together to help identify gaps, overlapping protection, and the limits your business or contracts may require.
