Builder’s Risk


Are you planning a renovation? Doing some remodeling to your home? Or, perhaps, you’re a business owner who handles a construction company and you want a little added protection while you’re working on your next big commercial project. Your typical commercial property insurance or home insurance policy will not cover properties that are under construction, but an added builder’s risk insurance policy might. Hitchings Insurance is here to lay it out bare for you.

Builder’s risk insurance coverage is a type of insurance policy that is designed to cover both commercial and residential structures from damages and losses during the period where they are being remodeled or under construction or even simply being renovated upon. The reality of construction is that buildings tend to be more “at-risk” when they’re being built or renovated, due to the fact that they may not be consistently occupied, that they don’t have the physical structure to withstand the elements, and that they’re the prime location for squatters, thieves, and vandals.

Get insured with Hitchings Insurance and begin on a comprehensive builder’s risk insurance policy today. A comprehensive form policy includes hazards that might threaten your building structure, materials and supplies, equipment, and more. If you want peace-of-mind to finish your construction project without hassle, builder’s risk insurance is the solution.

What Does Builder’s Risk Insurance Cover?

Builder’s risk insurance, also commonly known as course of construction insurance, will cover a wide variety of items used to complete a construction project, from the materials on-site to the actual building, and even your liability in the event there is physical losses or damages due to an insured event, like theft, fire, or even vandalism. A builder’s risk insurance policy may cover you from the onset of the project all the way to its end. A Hitchings Insurance agent will ensure that you are adequately covered for each step of your project, whether that’s a massive, multi-million dollar government project or a small residential renovation project.

A basic form builder’s risk insurance policy may insure the following:

Building Structure

A standard builder’s risk insurance policy may cover you if any damages occur to the building under construction while construction is still ongoing. Insurable perils include such things as fire, theft, vandalism, storm, and hail.

Materials On-site

A builder’s risk insurance policy may cover you for any damages which occur to your materials and equipment being used to finish the construction project.


If damages occur due to an insurable event, your builder’s risk insurance policy may be able to cover your liability, including settlement costs, legal costs, defense costs, and more.

Accidents or Injuries

Not every builder’s risk insurance policy will cover injuries or accidents that occur on a worksite, but some policies will. Your business may also need to invest in separate workers’ compensation coverage for this addition.

Coverage may vary from policy to policy. In most cases, note that it is recommended that the name of the insured is the same as the name of the property owner, rather than the contractor – no matter who purchases the insurance. Moreover, builder’s risk insurance may not cover theft of supplies from job site or construction materials in transit, but you may be able to purchase additional coverage for excluded items in exchange for increased premiums.

What About Builder’s Risk Insurance for Homeowners?

For residential constructions or remodelling, builder’s risk is often purchased to enhance where your home insurance might fail. The homeowner, in this instance, might invest in builder’s risk insurance to ensure their property would be protected.

Builder’s risk insurance vs homeowners insurance – your average home policy may not cover a building under construction. This is when you would need builder’s risk insurance. A builder’s risk insurance policy ends when the construction is completed, at what point you would need home insurance in place to ensure everything is covered. You may need to inform your broker about whatever updates you made to your home, to ensure that they can be covered.

Who Pays for Builder’s Risk Insurance?

It depends on the project, but generally either the general contractor or the building owner will pay for builder’s risk insurance. This tends to be the case because they are the ones who are the most financially invested in a project and, as a result, would face the biggest losses if something unexpected occurred.

How Long Does Builder’s Risk Insurance Last?

Course of construction insurance generally lasts for as long as the name implies – for the course of construction. The limit of coverage that is permitted is typically the overall value of the project. The policy must be purchased when the project is less than 30% complete and will state a level of completion upon which coverage will end. Other events can trigger insurance to end early, such as:

  • If the project has been idle for over 60 days
  • If the project has been abandoned
  • If the owner takes possession of the property
  • After 90 days have passed since the completion of the construction
  • After a pre-determined number of occupancy days

Providers may permit a delay in construction if those days were due to a covered casualty, during which point builder’s risk insurance will be extended.

How Much Does Builder’s Risk Insurance Cost?

Coverage for builder’s risk insurance tends to vary based on the project and the services being offered. When you are required to fill out a form applying for builder’s risk insurance, you’ll be asked questions about your business and about the project.

Your answers will help determine the overall cost. You may be asked questions about the following:

  • Hard and soft cost of project
  • Type of project
  • Residential or commercial
  • Insurance history

Get a Free Builder’s Risk Insurance Quote

Having been serving Hancock County and Northwest Ohio businesses and families for over 50 years, Hitchings Insurance has what it takes. We’re your one-stop shop that is staffed by experienced, dedicated and licensed insurance professionals. You can get builder’s risk insurance from some of the very best experts, in addition to numerous other insurance products and options, like auto, home, personal liability, health, and so much more. Because our agency is customer-focused and people-centric, you can be confident we’ll be gunning to meet your needs above all else when we help you find the right builder’s risk insurance policy.

No two projects are the same. It’s important to get personalized insurance that fits your business’ needs, no matter what those needs are. We take into account different budgets, different risks, and by working with a broad array of regional and national top-tier insurance companies, we can offer you plenty of different options. You’ll get what you need for the right price.

Begin today on peace-of-mind by getting a free builder’s risk insurance quote with Hitchings Insurance.