Builders risk insurance covers a home while it is in the course of construction. Builders risk can also cover construction materials that haven’t been installed yet. Usually it is the homeowner that purchases insurance but in some cases the contractor/builder may purchase it. Builders risk insurance is often required for a construction loan.

Typically builders risk insurance is purchased before construction begins and generally ends when the building is put to its intended use or sold. Discounted rates may apply to customers who purchase the policy before construction has begun.

Usually builders risk insurance is offered on what is known as a “special perils” basis. Special perils policies are a form of all-risk insurance subject to certain exclusions.

Builders risk insurance can be purchased for new construction projects as well as renovations and remodels. In the case of a renovation or remodel, builders risk insurance can also cover the existing structure as well as the additions and renovations being done.