Builder’s Risk Insurance
Builder’s Risk Insurance
Builder’s risk insurance — also called course-of-construction coverage — protects a
building and its materials while it’s being constructed or renovated. If fire, theft, wind, or
vandalism damages the project before it’s finished, builder’s risk helps cover the loss so the
work isn’t derailed. It fills a gap that neither a finished-building property policy nor general
liability addresses. Covella places builder’s risk for contractors, developers, and owners
across the tri-state.
What it covers
The structure under construction · materials, fixtures, and equipment on-site (and sometimes in transit or storage) · losses from fire, wind, theft, and vandalism · often soft costs like extended interest or lost rents (varies by form).
Who needs it
General contractors, developers, and property owners on new builds or major renovations — and it’s frequently required by lenders.
Cost factors
project value, construction type, duration, and location.
Common questions about our coverage & services
We’ve answered the most common questions to make choosing and managing your insurance easier and stress-free.
1. Who buys the builder’s risk policy — owner or contractor?
Either can, depending on
the contract; the key is that the policy is in place before work begins and names the right
parties.
1. How long does coverage last?
Typically for the construction period; it ends when
the project is complete and the permanent property policy takes over.