Who Needs Builder’s Risk Insurance?

Owners – Builder’s risk insurance is available directly to the owner of residential and commercial projects. Developers and speculative projects are also eligible. If you’re acting as the owner/builder, the actual construction work must be done by licensed and experienced contractors.

Contractors – Builder’s risk coverage is available to cover projects big and small. For developments with more than one location, a reporting form policy can help simplify your builder’s risk administration.

New Construction – Builder’s risk insurance for new construction projects is for ground-up construction. It covers materials at the job site and the structure as it is being built.

Rehab/Remodeling– The course of construction insurance policy will cover the value of the rehab work, and may also provide coverage for the existing building (shell). For speculative rehabs, coverage may also be provided for a developer’s anticipated profit. This is only available for commercial rehab projects.

What Does It Cover?

The policy covers damage done to the insured structure from a wide variety of events. Damage from the following events will be covered by most policies:

• Fire
• Wind (may be limited in coastal areas)
• Theft
• Lightning
• Hail
• Explosion
• Vandalism
• Vehicles/Aircraft

Of course, no insurance policy covers everything. You should read your course of construction policy to be familiar with its limitations and exclusions. Standard exclusions include earthquake, employee theft, flood and other water damage, weather damage to property in the open, war, government action, contract penalty, 

voluntary parting, and mechanical breakdown.

If you’re worried about an earthquake or flood, you can buy separate coverage in some areas. When you get a quote from us, your quote will indicate whether they’re included in the policy offered by the insurance company.

How Can I Buy Builder’s Risk Insurance?

Click here to get started with a free quote or call  916-773-3800 to speak with an ISU representative. We’ll help tailor a policy that fits your needs and budget.