Builders Risk Insurance Coverage

What does builders risk insurance cover? The answer depends on the insurance provider.

Generally, builders risk insurance covers the materials, fixtures and/or equipment being installed during the construction or renovation of a structure should those items sustain physical loss or damage from a covered cause. Fire, wind and theft can be devastating, but the impact of not adequately insuring a construction project can be even more severe for all parties associated with it.

Not every course of construction policy is written the same way. In fact, coverage forms are not standard in the marketplace and vary by the insurance provider. That’s why it’s crucial to have a clear understanding of the scope of coverage, especially exclusions, before your client buys a builders risk policy.

Standard Coverages

The US Assure Builders Risk Plan insured by Zurich makes this simple by design. Our policies are broad in scope, so unless a peril or risk is specifically excluded, it’s considered covered. Some of the coverages standard to our builders risk policy include:

• Theft
• Vandalism and arson
• Collapse
• Fire or lightning
• Property damage
• Materials in transit and at temporary locations
• Debris removal
• Ordinance or law

Optional Coverage Endorsements

The US Assure Builders Risk Plan insured by Zurich offers comprehensive coverage that is designed to be customizable. Each policy can be tailored to meet the specific needs of your client and most coverage limits can be adjusted as well. Some optional coverage endorsements include:

• Soft costs
• Backup of sewers, drains or sumps
• Better green
• Business income and extra expense*
• Contract change order
• Earthquake or earth movement (where available)
• Flood (where available)
• Rain, snow, sleet and ice (water intrusion) coverage extension*

*For commercial projects only

What optional builders risk coverages are needed?

Read the construction agreement between the owner and the builder or developer. It will dictate the project requirements for builders risk insurance. For registered insurance producers with US Assure, our builders risk coverage forms are available for review when you log in to your online account.