When And Why Would I Need Builder’s Risk Insurance?
A builder's risk insurance policy is important for any general contractor or property owner who is building a building or a home or making structural improvements to a property. This type of insurance is often purchased by the owner of the building or property. Many times, however, it is contractually required that the general contractor is covered as well. Because this is a type of property insurance, builder's risk insurance generally does not provide liability coverage.
A builder's risk insurance policy will cover against losses due to fire, lightning, wind, vandalism, theft, and other natural forces. Coverage lasts during the period of construction and ceases once construction is completed.
Disclaimer: The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.