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Builders Risk
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Builders Risk is a special type of property insurance which indemnifies against damage to buildings while they are under construction.Builder’s Risk insurance is coverage that protects an insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.

Buildings are subject to many different risks while under construction. They may catch fire, be damaged by high winds, or fall victim to other force majeure. A principle of common law is that any new construction or other improvement to land becomes property of the owner of the land – the title holder – once there has been an “improvement” to the owner’s site. The general contractor may be responsible for any losses caused by his own negligence, but the owner is responsible for most other losses. Builder’s risk insurance indemnifies against some of these losses.

Builders risk insurance usually indemnifies against losses due to fire, vandalism, lightning, wind, and similar forces. It usually does not cover earthquake, flood, acts of war, or intentional acts of the owner. Coverage is typically during construction period only, and is intended to terminate when the work has been completed and the property is ready for use or occupancy.