Understanding Builders Risk Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is Builders Risk Insurance?

Builders Risk Insurance is a type of property insurance specifically designed for buildings under construction. It covers the structure and materials used in the construction against risks like fire, theft, vandalism, and natural disasters.

Builders Risk Insurance

Examples of Coverage

  1. Material Theft: If construction materials are stolen from the site, builders risk insurance can cover the loss.
  2. Damage Due to Weather: Covers damage to the building from events like storms or floods.
  3. Vandalism: If the construction site is vandalized, the insurance can cover the cost of repairs.

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Key Features of Builders Risk Insurance

Coverage DurationTypically lasts for the duration of the construction project.
Customizable LimitsLimits can be adjusted based on the project size and value.
Specific Perils CoverageCovers specific risks such as fire, wind, or theft.
Exclusion ClarityClearly outlines what is not covered, like normal wear and tear.
Extension OptionsPossibility to extend coverage in case of project delays.
What Is Builders Risk Insurance


Builders Risk Insurance provides essential protection for construction projects, covering a range of risks that could otherwise lead to significant financial losses. It is a vital component for anyone involved in construction, from builders to property owners. Contact us today for a free quote.

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Frequently Asked Questions

What is an example of a builder risk insurance claim?

A builder’s risk insurance claim could arise when a severe weather event, such as a hurricane, damages a building under construction. The contractor could file a claim to receive compensation for damages incurred, including the loss of building materials and any necessary repairs to maintain the structural integrity of the ongoing project. The coverage would depend on the terms outlined in the builder’s risk insurance policy. This claim helps ensure the continuity of construction without incurring a financial loss due to unforeseen events.

What is builders all risk insurance?

Builders all risk insurance is a specialized insurance policy designed to protect construction projects from risks and unforeseen incidents such as fire, theft, vandalism, or natural disasters. This comprehensive coverage safeguards the structure and materials, fixtures, and equipment used during the construction process. The contractor generally purchases the policy or the project owner to ensure financial security and timely completion, even when adverse situations occur. It is a cornerstone in risk management strategies for construction endeavors.

What is builder’s risk insurance in Florida?

In Florida, builder’s risk insurance operates similarly to other regions, providing coverage for construction projects against unforeseen damages and losses such as those caused by hurricanes, theft, or vandalism. Given Florida’s susceptibility to hurricanes and storms, it’s often a critical component in the construction industry, helping protect investments and ensure that projects can recover and continue even after a significant setback. Policies can be tailored to individual projects, offering a financial safety net and facilitating a smoother, more secure construction process in the state’s unique environmental context.

What is builder’s risk insurance in Michigan?

In Michigan, builder’s risk insurance protects construction projects from various perils, including theft, vandalism, and extreme weather events. Contractors or project owners in Michigan generally acquire this type of insurance to shield their investments from unexpected incidents that can cause delays and additional costs. Like in other states, the specific parameters of the coverage can be tailored to the individual project’s needs, ensuring financial security and the means to complete the project despite unforeseen setbacks. It is a crucial tool in risk management for construction projects in Michigan.

What does builder risk insurance cost?

Builder risk insurance cost varies depending on the project’s size, location, and coverage amount. On average, the cost ranges from 1% to 5% of the total construction budget. Factors like the type of construction, materials used, and policy duration can also influence the premium. It is advisable to obtain quotes from multiple insurers to find the best deal.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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