Builder's Risk — For the Property While It's a Project.
Renovating a rental, converting a building, or constructing new — while a property is under construction, a standard property policy isn't built to cover it. Builder's risk insures the structure, the materials, and the work in progress.
What builder's risk covers
Builder's risk (course-of-construction insurance) covers a building while it's being constructed or renovated. It insures the structure under construction, materials and supplies on site or in transit, and often the soft costs and extra expenses a delay creates after a covered loss.
| Structure under construction | The building and the work in place, against fire, wind, theft, and more. |
| Materials & supplies | On site, in transit, or at a storage location awaiting installation. |
| Soft costs | Some forms cover delay costs — extra interest, fees — after a covered loss. |
| Debris removal & ordinance | Cleanup and code-driven costs tied to a covered loss during the project. |
When a landlord needs it
- Gut renovation or major rehab of a rental property.
- Ground-up construction of a new rental building.
- Conversion — turning a single-family into multifamily, or commercial to residential.
- Significant additions that take the property partly offline.
Why the standard property policy isn't enough
A normal property or dwelling-fire policy assumes a finished, occupied (or at least complete) building. During active construction the exposures are different — open walls, materials on site, contractors coming and going — and a standard form may exclude or limit coverage, especially once the building is also vacant. Builder's risk is purpose-built for the construction phase, then you transition to a permanent property policy when the work is done and the building is ready to rent.
What it typically costs
- Rated on the completed value of the project, the construction type, and the term
- Usually written for the project duration, with extensions if the timeline slips
- We coordinate it with the permanent policy that takes over at completion
FAQ
I'm just doing a big renovation, not new construction. Do I need builder's risk?
Often yes. A substantial renovation changes the risk — open structures, materials on site, contractor activity — in ways a standard property policy may not cover, particularly if the building is also vacant during the work. Builder's risk is built for that phase.
What happens when the project is finished?
You transition from builder's risk to a permanent property and liability program for the completed, tenanted building. We coordinate the handoff so there's no gap on the day it converts to occupied and rentable.
Who should carry it — me or my contractor?
It depends on your contract. Sometimes the owner carries builder's risk, sometimes the general contractor does. We help you confirm who's responsible so the project isn't left uninsured by assumption.
Insure the property while it's still a project.
From a gut rehab to ground-up construction, we cover the work in progress and coordinate the handoff to your permanent policy at completion.