Why Builders Should Always Carry the Builders Risk Insurance
Protect Your Project. Protect Your Business.
Builders Risk Insurance is designed to safeguard your construction projects from unexpected events like fire, theft, vandalism, and weather related damage. This specialized property coverage applies while the home is under construction and remains in your inventory, ending only when the project is complete, sold, or abandoned.
So, who should carry the policy?
Simple answer The Builder. Always.
Here’s why it’s critical for you to be the Named Insured on the policy:
Full Control
When the policy is in your name, you’re in control. You can manage coverage limits, request extensions for delays, and make adjustments as the project evolves. If a claim arises, the check comes directly to you protecting your financial interest and keeping the project moving.
Better Coverage
If a homeowner purchases the policy, it may not extend to materials you provide—whether stored on site, off site, or supplied by subcontractors. Even if you’re listed as an Additional Insured, you won’t have the ability to manage or modify the policy. When the policy is in your name, you retain control over the terms, limits, and any needed changes throughout the project.
Contractual Leverage
We call it Fur Lined Handcuffs. Once construction begins and the policy is active in your name, it becomes much harder for a homeowner to walk away from the contract without losing coverage. Most carriers won’t write a new policy mid project especially beyond the six month mark. It’s rare, but when things go sideways, you’ll be glad you’re protected.