Builder's Risk Insurance
Builder's risk, also called course of construction, covers a structure while it's being built or renovated — the work in place, and usually the materials waiting to be installed.
Why a Normal Property Policy Doesn't Work
A property policy covers a completed building. A half-finished one, with materials stacked on site, is a different exposure and needs its own policy.
When It Comes Up
A fire during framing. A storm damages work in place. Materials are stolen off the site before install.
Who Buys It
Sometimes the owner, sometimes the general contractor — the construction contract usually says which. It's worth settling before work starts rather than after a loss, and all interested parties (including the lender) typically need to be named.
When It Ends
Coverage terminates on a defined trigger: completion, occupancy, or a set date. That moment is also when the permanent property policy has to take over. The gap between the two is a real exposure — see commercial property.
What It Doesn't Do
Builder's risk generally excludes faulty workmanship, design error, and the cost of correcting defective work. It isn't a warranty on the construction. It also doesn't cover injury or third-party damage, which is general liability.
Questions People Ask
Who is responsible for buying builder's risk?
The construction contract usually assigns it, to either the owner or the general contractor. Settle it before work begins.
Does builder's risk cover faulty workmanship?
Generally no. Defective work and the cost to correct it are typically excluded. It covers damage from covered perils, not construction quality.