Builders risk insurance (also known as course of construction or inland marine coverage) insures the materials, fixtures and/or equipment to be permanently installed during the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.
A builders risk policy offers standard coverages and optional endorsements based on project needs. This makes it easy to customize coverage for almost any residential or commercial course of construction project. While exact coverages and limitations vary, builders risk policies may offer coverage for, but not limited to, the following:
Your client may purchase other endorsements to expand the already extensive builders risk coverage, subject to underwriting guidelines. This will depend on the coverage form, project type and total completed value.
A standard builders risk policy does not typically provide coverage for workplace accidents, bodily injury or liability coverage. You can get a stand-alone premises liability insurance policy for slip-and-fall accidents to add to your total coverage.
Most property owners or organizations that have a financial interest in a completed construction project can purchase builders risk insurance in their name, including personal and commercial lines clients.
Eligible clients who can buy commercial or residential builders risk policies include:
Policy features, benefits and terms remain the same, no matter who is named as the insured. However, types of available builders risk policies vary by client type.
Through the Builders Risk Plan insured by Zurich, residential and commercial policies can be secured for projects valued up to $75M in three construction segments:
Demand for a builders risk policy is often time sensitive. Builders may need a builders risk policy to apply for or comply with government contracts. Banks or other contracts may also require it to secure a construction loan.
Most buyers make purchases prior to or on the date of construction when they finalize the contract. However, you should secure coverage by the time materials are delivered to the construction site. This means you’ll need to act promptly when your client requests builders risk insurance coverage.
Sometimes, your client may start construction without builders risk coverage. If so, you'll need the percentage of construction completed as well as the total completed value for the application process. Projects greater than 30% complete may be eligible through our program but subject to additional underwriting review.
The cost of a builders risk insurance policy usually depends on the project's cost and these factors:
A policy from the Builders Risk Plan insured by Zurich starts at $375 in most states. Additionally, state rate pages and a premium estimate calculator may be available based on the project type.
Builders risk insurance policies are typically available for residential or commercial new construction, remodeling (including or excluding the existing structure) and installation projects.
From there, builders risk insurance policy types vary between providers. Despite different terms, most builders risk insurance is available in a few different ways. Those policy types typically include:
To determine the right builders risk policy for your construction client, the agent needs to assess their portfolio. We recommend agents ask builders questions such as:
These are all factors you should consider during the policy selection process.
Partnering with an expert insurance company that is financially stable and reliable is the best place to start.
Offering an insurance company with a proven track record of favorable claims history is also a critical factor. US Assure® and Zurich practice sound and consistent underwriting. The appetite and pricing remain consistent. And, over 45 years of expertise in construction make them proven dependable partners.
US Assure® is ready to help you get coverage quickly for your clients. You can expect benefits like online policy issuance with a top-rated platform. You also get access to a responsive service and underwriting team. Getting registered is quick and easy, with no volume or premium commitment required.
Learn more insights about what builders risk insurance covers when you download our complimentary resource, From Groundbreaking to Remodeling: Builders Risk 101 Guide.
This is intended as a general description of certain types of insurance and services available to qualified customers. Any description of policy provisions is meant to give a broad overview of coverages and does not revise or amend a policy. Refer to the policy coverage form for a complete representation of the scope of coverage, terms, conditions, exclusions and more. The policy is the contract that specifically and fully describes your coverage. Some products may not be available in all states and may only be offered on a non admitted basis. Product availability is subject to change.
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