Builder’s Risk Insurance Coverage
for Construction Projects
Protect Your Construction Project with Builder’s Risk Insurance
Every construction project or renovation has different insurance requirements. Madison Avenue Insurance helps builders, contractors, developers, property owners, and lenders clearly evaluate builder’s risk insurance coverage options for construction projects of all types.
Contact our independent insurance agent team to discuss your project, review your coverage needs, and to receive a personalized Builder’s Risk Insurance Quote today.
We are now open for business in California!
Insurance Services by Madison Avenue, our new California division, provides builders risk insurance and course of construction insurance for commercial and residential projects throughout California, protecting builders, contractors, developers, and lenders during construction projects. Our agents specialize on Builders Risk Insurance policies for California, Washington, Oregon & Idaho.
Partner with Insurance Service by Madison Avenue for your Builder’s Risk Insurance Coverage in California. Connect with one of our team members today.
Our insurance specialists know the greater Los Angeles area – from Palm Beach, San Diego & Newport Beach, to Laguna, Huntington and Long Beach, to Torrance, Santa Monica to Santa Fe Springs, Malibu, Thousand Oak, Coachella Valley and Ventura.
WE CAN HELP!
What Does Builder’s Risk Insurance Policy Cover?
Builder’s Risk Insurance, also called course of construction insurance, helps protect a building and eligible project materials against covered losses during all phases of the project. Our agents work with builders all across California, Washington, Oregon and Idaho.
Builder’s Risk Insurance Protects Against:
- Risks that can occur while a property is being constructed
- Risks during renovations on a property
- Risks while undergoing major repairs
Typically the property owner, contractor, or developer purchases the policy, with coverage lasting from six-months to several years.
Madison Avenue’s Insurance professionals tailor builders risk and course of construction insurance coverage to your project’s specific needs.
- For The Builder: Our contractor insurance specialists provide customized coverage for projects ranging from a single home to an entire development to commercial buildings.
- For The Homeowner: Our personal insurance specialists provide tailored coverage for custom homes and luxury homes alike.
Builder’s Risk Insurance FAQ
Property owners, general contractors, real estate developers, and lenders may need builder’s risk insurance, depending on the project and the requirements of their construction or financing agreements.
It Applies During Construction: A builder’s risk insurance policy is only in effect during the construction or renovation phase. Once the project is completed and ready for occupancy, the coverage typically expires, and a standard insurance policy is written for the property owner.
The initial coverage policy limit should be enough to cover the full replacement cost of the property, including materials, labor, and any potential building code requirements. This is usually based on the estimated cost to rebuild the entire project from the ground up.
- Building Coverage
Damages to buildings caused by fire, wildfires, vandalism, theft, wind, hailstorms, lightning, earthquakes, flood and mudslide. - Coverage for On-Site Materials and Equipment
This includes supplies like lumber, steel, windows, and other building materials. Coverage often includes temporary structures like scaffolding, tools, and construction trailers on-site.
Liability Coverage – typically, a builder’s risk insurance policy does not provide liability coverage for injuries or damage caused to third parties during construction.
This is often covered by the general contractor’s general liability policy, which is purchased separately by the contractor (for their protection). The homeowner can also be listed as an “additional insured” on the contractor’s liability policy. This would extend coverage for claims they are named in due to the acts of the contractor and/or their subcontractors due to construction.
If a neighbor trips over tree branches after a windstorm, an Owners and Contractors Protective Liability policy may deny coverage because the claim is unrelated to the construction. An Owners Interest policy may provide broader liability coverage for the entire premises; always check with your agent.
Builder’s Risk Insurance policies typically last 6 to 12 months but can extend for several years, depending on the project. Coverage generally ends when construction is completed, the property is occupied, or the policy expires – all subject to its terms and conditions. Extensions may be available for projects that experience delays.
Apartment Building Construction Liability – Claim Example
Liability Example: A newly constructed apartment building’s deck collapses during a tenant’s gathering, injuring several guests.
If the Owners & Contractors Liability policy includes completed operations coverage, the claim may be covered. Without this clearly stated, the apartment building’s general liability insurer may deny coverage, citing a construction defect. This assumes no other factors establish liability on the part of property management, owner or the tenant.
Insurance policies and contracts can be complex. Contact our Experienced Insurance Team so they can help you understand your coverage options and make informed decisions.
Both Owners and Contractors Protective (OCP) Liability and Owner’s Interest (OIP) Liability offer protection for property owners during construction.
Owners and Contractors Protective Liability insurance provides coverage to supplement the Owner’s “additional insured” status on the General Contractor’s policy during construction.
The policy covers the Owner for Bodily Injury or Property Damage caused, in whole or in part, by an independent contractor’s work for the Owner. Normally, the contractor purchases the policy to provide coverage for vicarious liability that the Owner incurs as a result of the contractor’s acts or omissions on the project.
The policy also responds to liability arising out of the insured’s own acts or omissions in connection with its general supervision of the contractor’s operations.
Owner’s Interest Liability insurance is a broader coverage that provides full General Liability limits for property owners, including Premises and Completed Operations.
It can also include Extended Completed Operations up to the statute of limitations for construction-related claims.
This coverage is intended to be contingent to the General Liability limits of the General Contractor but can drop down and pay covered losses that are un-collectible under the General Contractors policy because limits have reached maximum limits or coverage is otherwise excluded.
Insurance Services by Madison Avenue
Builder’s Risk Insurance and Course of Construction Coverage Offerings
- Builder’s Risk Insurance Policies in California, Washington, Oregon & Idaho
- Contractors General Liability
- Owners & Contractors Protective Liability
- Owners Interest Liability
- Developer Liability
- Building Coverage – Both during and after the construction project
- Theft of Materials or Machinery
- Building Theft or Vandalism
- Building Collapse
- Theft of Damage of Materials in Transit
- Commercial Loss of Income
- Residential Loss of Use
- Debris Removal
- Building Ordinance or Law Requirements
- Earthquake