By JOEL GOLDMAN

Consider a scenario: A sudden storm damages the building structure and key materials.

Without insurance, these costs could derail the project. With builder’s risk insurance, however, you’re covered, ensuring that work can continue without financial strain. This coverage isn’t just for contractors. Homeowners, property owners and developers also need it to protect their investments. Whether it’s a simple kitchen remodel or a commercial property build, having the right policy ensures peace of mind.

What Is Builder’s Risk Insurance and Why Do You Need It?

Builder’s risk insurance is a specialized policy that offers coverage for properties under construction. It’s a financial safety net that protects against damages caused by unforeseen events, helping projects move forward without crippling setbacks. Builder’s risk insurance is essential for a variety of projects, including:

• New Construction: Ground-up builds of homes, offices or commercial properties.
• Renovations or Remodels: Updates to existing structures, from small renovations to major overhauls.
• Tenant Improvements: Custom upgrades like flooring installations or plumbing modifications in rented spaces.

What Builder’s Risk Insurance Protects

Builder’s risk insurance policies cover a broad range of risks to ensure the safety of your project. These include:

• Acts of Nature: Protection from weather-related events such as storms or earthquakes.
• Vandalism and Theft: Coverage for intentional damage and stolen materials.
• On-Site Equipment and Materials: Protection for tools and materials, whether onsite or in transit.
• Property Damage: Safeguards the structure being built or renovated.
• Soft Costs: Reimbursement for additional expenses like permit fees, legal costs or reinspection fees resulting from covered events.

What Builder’s Risk Insurance Doesn’t Cover

While builder’s risk insurance is comprehensive, it’s not all-encompassing. For example, it doesn’t cover:

• Employee injuries (covered under workers’ compensation policies)
• Intentional damage or sabotage
• Damages caused by terrorism or military actions
• Manufacturing defects in building materials

Pairing builder’s risk insurance with general liability for contractors Insurance ensures full protection against project risks.

Tailored Solutions for Every Project

No two projects are the same, which is why builder’s risk insurance can be tailored to your specific needs. From coastal builds to high-value renovations, working with an experienced advisor helps ensure that your policy covers every potential risk.

Joel Goldman is the founder of Starisks.