What builder’s risk covers
Builder’s risk is specialty property insurance covering a structure while it’s under construction. Unlike homeowners or commercial property, it handles the unique risks of an unfinished building materials on site, stored offsite, in transit, plus theft, vandalism, fire, and weather losses.
Common covered perils and extensions
- Fire and lightning
- Wind, hail, hurricane
- Theft and vandalism
- Explosion
- Scaffolding, forms, temporary structures
- Construction documents, plans, blueprints
- Debris removal and pollution cleanup
- Soft costs interest, permits, architect fees if the project is delayed
Who needs builder’s risk
Anyone with a financial stake in an under-construction property: owner, general contractor, subcontractors, lender, architect, engineer. On San Diego County residential builds, the general contractor usually carries it and adds the owner. On larger commercial jobs, a wrap-up policy (OCIP/CCIP) often handles it.