Builders risk covers a structure while it’s under construction or major renovation, and most projects fit standard builders risk markets without issue. Larger, longer-duration, higher-value, or unusually designed projects, or ones in flood zones or with unconventional materials, often need a surplus lines builders risk policy instead, since standard carriers cap what they’ll take on for both project size and duration.
What Builders Risk Covers
Damage to a structure, and often materials on-site, during construction. Standard-market builders risk typically caps both the total project value and the construction timeline it will cover.
Project Characteristics That Push Toward Specialty Markets
- Project duration longer than standard-market limits
- Total project value above standard-market caps
- Location in a flood zone or high-risk area
- Unconventional building materials or methods
Connection to the Agency’s Contractor and Investor Client Base
This overlaps directly with the agency’s existing contractor and real estate investor clients, many of whom take on projects that exceed standard-market builders risk parameters.
Frequently Asked Questions
What’s the difference between builders risk and a standard property policy?
Builders risk is specifically built for a structure during construction or major renovation, when standard property coverage typically doesn’t apply.
Why do large or long-duration projects need a different builders risk market?
Standard-market builders risk policies usually cap both total project value and construction timeline, and larger or longer projects exceed those caps.
Does builders risk cover the property once construction is finished?
No, builders risk coverage ends at project completion, at which point a standard property or homeowners policy takes over.
