Welcome to Renovation BuildersRisk

Frequently Asked Questions

What is “Builder's Risk” or “Course of Construction” Insurance?
Builder’s Risk Insurance is a form of property insurance specifically designed to cover buildings under construction or renovation. The rates for builder’s risk insurance are discounted because there is less property at risk when construction or rehab begins. Builder’s Risk Insurance is not a “standardized” coverage form and coverage varies from insurance company to insurance company. Renovation Builders Risk is tailored to cover rehab projects by protecting both the existing structure before repairs and the additional value added as the work progresses.

Do you cover theft of building materials?
Yes. While some companies exclude theft coverage until the building is “dried in” and can be locked, Renovation Builders Risk provides theft coverage up to the full amount of coverage purchased on the entire structure.

Does builder's risk insurance cover tools and equipment?
As a general rule, Builder’s Risk Insurance is designed to cover the building and building materials that will become a permanent part of the completed structure. Contractor’s tools and equipment should be covered by a Tools and Equipment Floater Policy.

Does builder's risk insurance include liability coverage?
No. Builder’s Risk Insurance is primarily property insurance. Liability coverage is usually purchased under a separate Comprehensive General Liability policy for injuries to the general public or under a Workers Compensation policy to cover workers injured on the job.

Do you cover the replacement cost of the lost or damaged property?
Yes. There is no deduction for depreciation on new construction. Renovation Builders Risk pays the cost to repair or replace the damaged property with materials of like kind and quality.

How is builder's risk insurance different from a homeowners insurance policy?
Builder’s Risk Insurance is usually less expensive than homeowners insurance because it is designed to cover an unoccupied dwelling under construction. It is a temporary policy with discounted rates. A homeowners policy is a more permanent policy designed to cover an existing home, its contents and the owner’s personal liability exposures. In addition to being more expensive, a homeowners policy would not include some of the special construction related coverage extensions found in a builder’s risk policy. Please note that Renovation Builders Risk is tailored for rehab projects because Renovation Builders Risk will provide coverage for occupied as well as unoccupied property.

Is builder's risk insurance renewable?
It depends. Most builder's risk insurance policies are written on an annual basis, however Renovation Builders Risk is available on either a 6 month or 12 month basis. A 6 month Renovation Builders Risk policy can be renewed one time to provide a total of 12 months coverage.

Can I buy builder's risk insurance after construction has begun?
Sometimes, but it is not a good idea to delay coverage. Renovation Builder’s Risk will not provide coverage on rehab projects that have not been reported using our secure website. We strongly recommend that our insured lenders report new loans at loan closing even if work does not begin immediately after closing.

My builder and my lender both need to be named on my builder's risk insurance. Is there an additional charge for this?
No. With Renovation Builders Risk, there is no additional charge for additional insureds and mortgagees. The Renovation Builders Risk website will issue as many Certificates of Coverage as needed to document the coverage for each insured party.