What Is Builder’s Risk Insurance?

Builder’s Risk Insurance is a specialized property insurance policy designed to protect construction projects while they are being built, renovated, or remodeled. It provides financial protection against unexpected events such as fire, theft, vandalism, windstorms, and certain types of water damage that could delay or increase the cost of a project.

Whether you’re a general contractor, subcontractor, property owner, developer, or investor, Builder’s Risk Insurance helps protect your investment from the first day of construction until the project is completed.

At Bates Roberts Fowlkes & Jackson Insurance Agency, we understand the unique risks construction professionals face. Our experienced team helps clients find customized Builder’s Risk Insurance solutions that fit their projects and budgets.

Why Builder’s Risk Insurance Is Essential

Construction sites are exposed to many risks every day. Materials, equipment, and partially completed structures can all be damaged or stolen before the project is finished.

Having Builder’s Risk Insurance provides:

Financial protection during construction
Peace of mind for contractors and property owners
Reduced project delays
Protection against unexpected losses
Compliance with many construction contracts and lender requirements

Without adequate coverage, one unexpected event could result in significant financial losses.

What Does Builder’s Risk Insurance Cover?

Coverage varies by policy, but most Builder’s Risk Insurance plans protect against common construction-related risks.

Buildings Under Construction

Protects the structure while work is in progress.

Construction Materials

Coverage often includes:

Lumber
Drywall
Roofing materials
Electrical supplies
Plumbing materials
Windows and doors

Many policies also protect materials while they are stored off-site or in transit.

Temporary Structures

Coverage may extend to:

Scaffolding
Construction trailers
Temporary fencing
Storage buildings

Fire Damage

Fire remains one of the most common construction risks. Builder’s Risk Insurance helps cover repair and rebuilding costs after covered fire damage.

Theft and Vandalism

Construction materials are attractive targets for thieves. Coverage may include stolen materials, fixtures, and damage caused by vandalism.

Wind, Hail, and Lightning

Many policies include protection against severe weather events that can damage unfinished buildings.

What Is Not Covered?

Builder’s Risk Insurance typically excludes:

Employee injuries
General liability claims
Faulty workmanship
Mechanical breakdown
Normal wear and tear
Flood damage (unless endorsed)
Earthquake damage (unless added)
Intentional acts
Equipment owned by contractors

Understanding exclusions helps prevent unexpected claim denials.

Who Needs Builder’s Risk Insurance?

Builder’s Risk Insurance is recommended for:

General contractors
Custom home builders
Commercial contractors
Property developers
Property owners
Investors
Remodeling contractors
Government contractors
Construction management firms
Real estate developers

Anyone with a financial interest in a construction project should consider Builder’s Risk coverage.

Types of Projects Covered

Builder’s Risk Insurance can protect a variety of construction projects.

Residential Construction

Single-family homes
Duplexes
Townhomes
Apartment complexes

Commercial Construction

Office buildings
Shopping centers
Hotels
Warehouses
Restaurants
Medical offices

Renovation Projects

Coverage also applies to many remodeling and restoration projects.

Common Construction Risks

Construction professionals encounter many hazards throughout a project’s lifecycle.

Common risks include:

Fire
Theft
Windstorms
Hail damage
Water damage
Lightning
Vandalism
Material damage
Structural collapse
Falling objects

Builder’s Risk Insurance helps minimize financial exposure to these events.

How Much Does Builder’s Risk Insurance Cost?

Premiums vary depending on several factors.

Insurance companies consider:

Project value
Construction type
Project location
Construction duration
Building materials
Security measures
Claims history
Coverage limits
Deductible amount

Projects with higher values or greater risks generally have higher premiums.

How Long Does Coverage Last?

Builder’s Risk Insurance usually begins when construction starts and ends when:

The project is completed
The building becomes occupied
Ownership transfers
The policy expires

Some insurers allow extensions if construction is delayed.

Builder’s Risk Insurance vs. General Liability Insurance

Although both are important, they serve different purposes.

Builder’s Risk Insurance	General Liability Insurance
Covers property under construction	Covers third-party bodily injury and property damage
Protects construction materials	Protects against lawsuits
Covers fire, theft, and storms	Covers legal claims
Ends after project completion	Continues as long as the policy remains active

Many construction professionals carry both types of insurance.

Tips for Choosing the Right Builder’s Risk Insurance

When comparing policies, consider:

Coverage Limits

Ensure coverage equals the completed value of the project.

Covered Perils

Review exactly which risks are included.

Deductibles

Choose a deductible that balances affordability and protection.

Optional Endorsements

Consider adding:

Flood coverage
Earthquake coverage
Soft costs
Debris removal
Temporary structures
Equipment protection

Claims Support

Choose an insurer known for efficient claims handling.

Ways to Reduce Builder’s Risk Insurance Costs

Construction professionals can lower premiums by:

Installing site security cameras
Using secure fencing
Protecting stored materials
Maintaining clean job sites
Completing projects on schedule
Following workplace safety procedures

Risk management benefits both safety and insurance costs.

Why Choose Bates Roberts Fowlkes & Jackson Insurance Agency?

For more than six decades, Bates Roberts Fowlkes & Jackson Insurance Agency has helped businesses and construction professionals protect valuable investments.

We offer customized insurance solutions, including:

Builder’s Risk Insurance
Business Insurance
Commercial Property Insurance
General Liability Insurance
Workers’ Compensation Insurance
Commercial Auto Insurance
Professional Liability Insurance
Surety Bonds
Employee Benefits
Life Insurance

Our experienced professionals work with trusted insurance carriers to provide reliable protection and competitive pricing.

Frequently Asked Questions

Is Builder’s Risk Insurance required?

While not always required by law, many lenders, property owners, and construction contracts require Builder’s Risk Insurance before work begins.

Does Builder’s Risk Insurance cover theft?

Yes. Most policies cover theft of building materials and certain fixtures, subject to policy terms and exclusions.

Can homeowners purchase Builder’s Risk Insurance?

Yes. Homeowners building a new home or undertaking major renovations may purchase Builder’s Risk Insurance.

Does Builder’s Risk Insurance cover weather damage?

Many policies include coverage for wind, hail, lightning, and certain other weather-related events.

When should Builder’s Risk Insurance be purchased?

Coverage should be in place before construction begins to protect the project from day one.

Final Thoughts

Builder’s Risk Insurance is one of the most important investments for construction professionals. From protecting valuable building materials to covering unexpected fire, theft, and weather-related losses, the right policy helps keep projects moving forward with confidence.

Whether you’re managing a residential build, commercial development, or major renovation, partnering with an experienced insurance agency can help ensure your project is properly protected.

At Bates Roberts Fowlkes & Jackson Insurance Agency, we are committed to helping contractors, builders, developers, and property owners find comprehensive Builder’s Risk Insurance solutions tailored to their unique needs.