Builder's Risk Insurance

Builder's Risk Policy is designed to cover a dwelling while it is under construction from start until such time a CO is granted. The Builder's Risk is written on an"all risk" basis including theft, fixtures, machinery and equipment that are on the premises that are going to become part of the dwelling are included as covered property. The policy is written on completed value, so since the exposure increases from 0 to 100 percent of the values over the term of the policy, builder's risk rates are adjusted to reflect the average value exposed.

A dwelling fire policy does not normally provide theft coverage on a vacant building which the Builder's Risk policy does provide theft coverage. Setting a proper value is difficult under a dwelling fire policy while the Builder's Risk policy is written to cover the constantly changing values.

A Builder's Risk policy can also be written to cover just building improvements, alterations or repairs which eliminate the need to insure the value of the entire building, instead insuring the value of the additions or improvements.