Property insurance while you build or renovate
Before the first day of work, talk through builders risk insurance for your project. Bring the plans, expected schedule and contract so we can discuss coverage questions from construction through completion.
What it usually covers
Policies vary; your policy wording decides. For covered damage during construction, coverage may include:
- The structure being built or renovated.
- Building materials at the site.
- Equipment awaiting installation in the building.
- Materials in transit, if included.
Discuss the project period and any off-site storage separately. Do not assume construction tools or every project delay are insured.
Common causes of loss
Problems to check while building or renovating. The construction percentages are older national ISO data reported by trade press, not California claims results. Your policy decides which events, property and project stages are covered.
Water damage
A pipe leak or water entering an unfinished building can damage completed work. National ISO data for 2017 put water at nearly 28% of construction claims. Review the water-on plan and where the crew can shut off the supply.
Theft
Materials may disappear before they are installed. National ISO data for 2017 put theft at about 23% of construction claims. Check locked storage and fencing, and schedule valuable deliveries close to installation.
Fire during construction
Hot work, temporary wiring and debris need attention throughout the project. National ISO data for 2017 put fire at 8% of construction claims. Review hot-work controls and remove combustible debris from work areas.
Wildfire
An unfinished structure can be exposed along with nearby properties. IA Magazine's 2019 reporting identifies western wildfire exposure as a builder's risk concern. Check brush and stored lumber near the structure, and discuss the location before work starts.
What to have ready for a quote
- Project location, description and construction plans.
- Estimated project value, start date and completion date.
- Owner, builder and contractor roles, including who must arrange insurance.
- Materials storage, deliveries, site security and any existing structure details.