Builders Risk: Back to Basics

Builders risk insurance doesn’t have to be complicated.

We’ve compiled the basic information about this essential construction insurance policy so you can get the info you need to protect your next project quickly and easily. So here it is, no complicated jargon, no class codes... just the basics of builders risk.

Builders Risk 101

What is it?

Simply put, builders risk insures a structure while it is under construction. It can cover ground –up projects, such as residential or commercial construction, as well as remodeling or tenant improvement projects. Also called course of construction insurance, this policy protects the insured against physical and/or financial loss. Construction projects present unique situations and exposures which increase the possibility of physical loss or damage to the structure.

What does it cover?

Builders risk insurance covers material and labor costs associated with the construction or remodel of a home or building.

Construction materials such as lumber, drywall, plumbing & lighting fixtures, HVAC units, and other materials are all prone to damage or loss during construction, and the costs and time to replace them can significantly delay or even terminate a project.

Builders risk insurance can be structured to cover:

  • Property Damage (construction material, fencing, scaffolding, etc.)
  • Theft, Natural & Man-Made Disasters (fire, lightning, explosion, etc.)
  • Soft Costs (architects/engineer fees, interest, insurance costs)

If you’re a spec home builder or developer, builders risk insurance can even be written to provide coverage for your potential profit if property is damaged or destroyed before completion.

Who needs it and why?

The impact of accidental and unpredictable events can be disastrous to your construction project. Builder’s risk insurance is meant to get the construction project resumed quickly by providing the finances to replace lost or damaged covered property.

If you are a homeowner, most homeowners insurance policies do not provide coverage for structures under construction or remodel.

If you are a spec home builder or developer, most construction lenders require you to carry a builders risk insurance policy but more importantly, inadequate coverage could mean disaster to your project’s bottom line.

How do I get covered?

Contact Hunter Insurance at 855-280-8562 or fill out the short form and we’ll contact you shortly regarding your project. To expedite your builders risk quote, please have the construction value and location address ready. We look forward to taking care of your insurance needs.


9855 Prospect Avenue - Suite D
Santee, CA 92071
Phone - 888.815.7639
Fax - 619.465.1926
CDI # OD94594