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Builder’s Risk is a property policy that addresses physical damage to a project during the course of construction. Builder’s Risk coverage can be provided on both a project-specific and rolling basis. Coverage extensions within the form include materials at an off-site storage facility, materials in transit, debris removal, and pollutant cleanup and damage to existing property.
- Single policy insuring the entire project from loss
- Coverage for uncontrollable exposures such as Coastal Windstorm, Flood, and Earthquake
- First-party policy coverage providing expedient payment to keep project progressing on-time
- Insured status for Owner, Lender, Mortgage Holder, Contractor, and all Subcontractors on job.
- Policy Term: Life of project for project-specific policies.
- Annual rates are offered for rolling programs covering all projects enrolled in the annual term until project completion.
- Limits of Liability: $600M per project for all other perils, $600M in terrorism (TRIA), $400M flood, $100M Earthquake and Coastal windstorm.
- Lower limits may apply for specific projects such as residential frame.
- Retentions: Project specific.
- Premiums: Varies by type of construction.
- Policy Forms: Coverage is provided on an all-risk property form including coverage for windstorm, flood, earthquake and terrorism.
Builder’s Risk policies can be endorsed to include labor and reasonable profit in the event of a loss. Additional endorsements can be added to provide coverage for declared soft costs.