Builder’s Risk Insurance: The Ultimate Guide

Share this article
Last updated on: September 10, 2021
Builder’s risk insurance

When you’re working hard to grow your construction business—or embarking on the build of your new home, properly protecting your interests is a pivotal part of the puzzle. Commercial coverage, including Builder’s Risk Insurance, is crucial to preserving your livelihood without risking financial stability.

Unforeseen circumstances, unfortunately, can—and most likely will—arise, so why not have the best safeguards in place to keep your business and finances intact?

Below, we will cover all you need to know about Builder’s Risk Insurance—what it is, what it covers, and why you should take steps to obtain this important commercial coverage.

What is Builder’s Risk Insurance?

The construction of a home or building is a meticulous, detailed process from start to finish. During the construction process, any number of weather-related events or human errors can potentially result in injury, damage, or financial loss, not to mention costly setbacks in the planned timeframe for construction.

  • Builder’s Risk Insurance works by protecting you against a multitude of claims that could otherwise have devastating effects—financially and otherwise.
  • This type of coverage helps with repair costs from damage caused by weather-related incidents, fire or explosions, vandalism, theft, and more.

What Does Builder’s Risk Coverage Provide?

  • More specifically, this type of commercial coverage will typically provide the costs of finishing an unfinished structure or replacing building materials needed to repair damage resulting from one of the aforementioned situations.
  • When it comes to weather-related damage, non-severe events including extreme wind, torrential rain, hail, and lightning are all incidents that can be covered under your Builder’s Risk Insurance policy claim.
  • Even on sites that are supposedly secure, theft is an all-too-common occurrence in the construction industry.
    • Expensive building materials that are stolen can be replaced with reputable Builder’s Risk Insurance coverage.

Why Do I Need to Consider Builder’s Risk Coverage?

When you’ve dedicated so much of your time, energy, and money into building a burgeoning construction business, why would you want to risk losing it all? Don’t leave your hard work and sacrifices vulnerable to external factors or weather-related elements.

  • Ensure that your projects are shielded from both naturally occurring and man-made disasters for an extra layer of protection for your business.
  • Additionally, homeowners who employ a contracting business to build new homes may request that this type of coverage be carried.
    • Builder’s Risk Insurance for homeowners provides reassurance that their future residence can be completed in a timely manner, without risking excessive loss or construction setbacks.
  • The last thing you want is to deplete your business funds or even have to dip into your personal finances to recoup expenses that could’ve easily been covered by Builder’s Risk Insurance.
    • Don’t let the idea of paying for Builder’s Risk Insurance dissuade you from obtaining this coverage—it will be more than worth the initial expense if you find you need to enter a claim.
  • An onsite fire can obviously cause major—if not total—destruction on an unfinished construction site. Having Builder’s Risk Insurance coverage in place is beneficial for replacing the materials needed to complete the project.
  • Acts of vandalism are unfortunately a common occurrence on construction sites and have the potential to set a project back months or longer, depending on the extent of the damage done. Graffiti-covered walls, broken windows, destroyed fixtures, or other materials can all cause a hefty setback if not covered with the proper policy.
  • Although insurance policies vary, typically, Builder’s Risk Insurance does not include coverage for the following:
    • Natural disasters
    • Faulty building materials or machinery
    • Damage to tools or construction equipment
    • Employee injuries
      • To cover these perilous situations, adding a severe weather endorsement or contractor’s tools and equipment coverage may be in your best interest.
      • Consult with your insurance agent about the need for these extensions. A skilled Alchemy Insurance agent will be able to weigh the risks and convey the most imperative information to you.
    • Are you leery of insurance agents, or concerned about the amount of time and patience shopping around for the most affordable, dependable coverage requires?
    • Alchemy Insurance Agency makes the process easy. Dedicated agents do the shopping and comparing for you.
      • By connecting directly with the top names in the insurance industry, Alchemy prioritizes your time, needs, and budget to connect you to the right coverage for your business.

Are you interested in obtaining the best Builder’s Insurance coverage on the market?

Let Alchemy Insurance Agency do the heavy lifting for your business!

Pennsylvania’s most trusted name in the insurance industry compares services and providers to connect you with carriers that suit your needs to a “T.”

Visit to get started today.

Share this article