Builder's Risk Insurance

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Builder’s Risk Insurance is for a Building Under Construction

A builder’s risk insurance policy is the only way to protect your property from certain events while it’s undergoing construction. Many people understand the significance of obtaining an insurance policy for a building once it’s completed, but few consider the importance of insuring a structure while it’s in the process of being built. Whether you are building a new home or a commercial facility, it is critical to expect the unexpected. Keep reading for all you need to know about this vital policy. 

Builders Risk Insurance - The Craven Agency

What is a Builder’s Risk Policy?

A builder’s risk policy is often referred to as a “course of construction” policy because it covers structures while they are in the process of being built or renovated. Unlike other policies, it is meant to be temporary. Once the renovations or construction is complete, a new policy must be purchased to cover the completed structure.

Builder’s risk policies are usually not offered as a stand-alone policy. They can be purchased as an endorsement to a commercial property policy, inland marine policy, or sometimes on a personal homeowners policy. 

What is Covered?

On a builder’s risk policy, a building undergoing construction or renovation is covered for physical damage resulting from the following events:

  • Fire
  • Theft
  • Vandalism
  • Wind
  • Collision with vehicle or aircraft

They may also cover some additional things such as debris removal, pollutant cleanup or removal, temporary structures, or materials used in construction. A common scenario in which a builder’s risk policy would be beneficial would be the theft of building materials from a construction site. 

What is Not Covered?

Like any other insurance policy, there will be some exclusions under a builder’s risk policy. The exclusions found are similar to other types of policies and include:

  • Flooding
  • Earthquakes
  • Damage to commercial vehicles
  • Intentional damage
  • Wear and tear
  • Manufacturing defects or flawed workmanship 

Who Should Get a Builder’s Risk Policy?

Anyone with a financial interest in a structure being built should obtain a builder’s risk policy. Financial interest means anyone who has the potential to lose money if an unexpected event were to happen to the building. This could mean a homeowner or a contractor, but also any architects or engineers working on the structure as well. Depending on where the structure is being built, local governments may also require this policy for local permitting compliance. 

How Do I Get a Builder’s Risk Policy?

If you are thinking of, or in the process of building a structure, whether commercial or residential, it’s critical to get the expertise of a trusted agent who can guide you towards what you may need. We have agents who are licensed and ready to answer any questions you may have on builder’s risk policies or any of your small commercial insurance needs. 

Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.​


We'd love to talk through any of your business or personal needs and build the right insurance policy for you.

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