Every construction project, whether it is a custom home, commercial building, or renovation, carries risks. From theft of materials to fire damage, unexpected events can create delays and financial loss.
That is where Builder’s Risk Insurance (also known as Course of Construction Insurance) comes in. This specialized property insurance protects buildings, materials, and equipment during the construction process.
At Prolines Insurance Agency, we specialize in guiding homeowners, contractors, and developers toward the right coverage so your project stays on track.
What Is Builder’s Risk Insurance?
Builder’s risk insurance, sometimes referred to as inland marine coverage, provides protection for structures and materials while they are being built or renovated.
A typical policy covers:
- Buildings and structures under construction
- Materials, supplies, and equipment (on-site, in transit, or stored off-site)
- Temporary structures such as scaffolding, fencing, and signage
Reference: Wikipedia – Builder’s Risk Insurance
What Does Builder’s Risk Insurance Cover?
Standard coverages include:
- Fire and lightning
- Theft and vandalism
- Windstorm, hail, explosion, or structural collapse
- Debris removal (LandesBlosch)
- Sewer backup
- Arson and accidental damage
- Materials in transit or temporarily stored off-site (Procore)
- Soft costs (with endorsements), including architectural fees, loan interest, permit expenses, and advertising costs
Example: If a storm damages framing materials before they are installed, builder’s risk insurance covers the cost to replace them.
What Is Not Covered (Exclusions)
Builder’s risk insurance does not cover every type of risk. Exclusions typically include:
- Employee theft or dishonesty
- Normal wear and tear
- Faulty design, defective materials, or poor workmanship
- Flood or earthquake, unless added by endorsement (Wikipedia)
- Landscaping, lawns, or trees
- Accidents or injuries on the job site (covered by General Liability Insurance)
Who Needs Builder’s Risk Insurance?
Anyone with a financial interest in a construction project may need this coverage, including:
- Homeowners building or renovating
- Contractors and builders
- Real estate investors and flippers
- Retailers, schools, and municipalities
Eligible Projects
Builder’s risk insurance can be applied to:
- New construction projects
- Remodelling projects, with an option to include the existing structure
- Installation projects, such as HVAC systems, electrical, or plumbing
When Should Coverage Begin?
Coverage should begin before construction starts or as soon as materials are delivered to the job site.
Policies are usually written for 3, 6, or 12 months. Coverage typically ends when:
- The building is complete
- The structure is occupied
- 90 days after completion (LandesBlosch)
How Much Does Builder’s Risk Insurance Cost?
Premiums vary depending on project type, size, and location.
On average, builder’s risk insurance costs 1–5% of the total construction value (NerdWallet).
Examples:
- A $200,000 home build may cost $2,000–$5,000 in premiums
- A small remodeling project may cost $400–$600
At Prolines Insurance Agency, we compare multiple carriers to provide competitive rates for your project.
Types of Builder’s Risk Policies
Depending on your needs, policies may include:
- Single Project Policy – coverage for one project only
- Reporting Form Policy – designed for contractors with multiple ongoing projects
- Blanket Deposit Premium Policy – covers several projects under one policy
- Installation Floater – protects subcontractor-installed equipment (Procore)
Optional Endorsements
To expand protection, endorsements can be added, such as:
- Flood and earthquake coverage
- Soft costs coverage (permits, legal fees, financing charges)
- Green building upgrades
- Business income and rental value coverage
- Testing coverage for newly installed systems
Frequently Asked Questions
Does builder’s risk insurance cover accidents on-site?
No, general liability insurance is needed for accidents or injuries.
Can homeowners buy this policy?
Yes, both owners and contractors can purchase coverage.
What if the project runs late?
Policies can often be extended by paying an additional premium.
When does coverage end?
Coverage ends when the project is completed, occupied, or when the policy expires (Wikipedia).
Why Choose Prolines Insurance Agency?
Every construction project comes with risks, but your investment should not. With Prolines Insurance Agency, you can expect:
- Access to multiple top-rated carriers
- Tailored policies for homeowners, contractors, and developers
- Competitive rates designed around your project needs
- Expert advice to avoid coverage gaps
Contact us today for a free quote and protect your project before the first nail is hammered.
