Personal Lines
Contractors
What Is Builder's Risk Insurance and When Do You Need It?
Aaron Ameduri
Last reviewed: September 22, 2026
Builder's risk insurance covers a structure while it's under construction or major renovation, including framing, materials on site, and often materials in transit. It's a short-term policy that runs for the length of the project, not a year-round policy like your regular property coverage.
When you actually need it
- New construction, ground-up
- A major renovation or addition that changes the structure
- Not usually needed for cosmetic work, like paint or flooring, where the building itself isn't structurally exposed
What it covers
- Materials and structure on site
- Materials in transit to the site, in most policies
- Theft and vandalism during construction
- Fire and weather damage mid-build
What it typically excludes
- Tools and equipment, which usually need separate contractor's equipment coverage
- Workers' injuries, covered under workers' comp instead
- Faulty workmanship itself, though resulting damage from it may be covered
How it's priced
- Estimated completed value of the project
- Project length
- Construction type and location
Who buys it
General contractors and developers doing ground-up construction or major additions. A homeowner doing a full teardown-rebuild needs it too, not just commercial GCs.
Common questions
Does my regular property policy cover a building under construction? No, most standard property policies exclude buildings under construction. That's exactly what builder's risk is for.
Who should be named on the policy, the GC or the owner? Depends on the contract. Often both are named insureds. Worth checking your contract's insurance requirements before the policy is written.
Send me the project details and I'll get you a quote before you break ground.
— Aaron