What does builders risk insurance cover during construction?

Builders risk insurance covers physical damage to a structure under construction. It typically includes protection against fire, theft, vandalism, wind, water damage, and losses related to materials, equipment, and labor. Some policies can also extend to soft costs, debris removal, and ordinance changes.

Who is responsible for purchasing builders risk insurance, the owner or the contractor?

The responsibility depends on the contract. In most cases, the property owner or developer purchases the policy to protect their financial interest. However, some contracts require the general contractor to carry the policy. It’s essential to confirm responsibilities in writing before work begins.

How do I get a builders risk insurance quote for my project?

To request a builders risk insurance quote, you’ll need to provide project details including the location, type of construction, total build cost, timeline, and who is involved. A qualified advisor will use this information to source quotes from vetted carriers and explain coverage differences.

Which types of construction projects qualify for builders risk insurance?

Builders risk policies can cover residential and commercial projects. These include ground-up builds, major renovations, multi-family conversions, tenant improvements, and even modular or prefabricated structures, provided the scope and timeline are clearly defined.

What’s the difference between builders risk insurance and general liability coverage?

Builders risk covers property damage to the structure during construction. General liability covers third-party injury or property damage caused by the contractor’s operations. Both are essential, but they protect different exposures.

Builders Risk Insurance

Builders Risk Insurance Designed for Renovations and New Construction

Coverage structured for clarity, compliance, and continuity across the New York tri-state area.

What Is Builders Risk Insurance?

Builders risk insurance protects structures under construction. Whether you’re building a custom home in Westchester, developing a mixed-use property in Brooklyn, or adding to a real estate portfolio in northern New Jersey, this coverage safeguards your investment from the day the first materials arrive on-site.

It typically includes protection against:

Fire, theft, and vandalism
Storm or water damage
Equipment loss
Material damage during transit
Soft costs related to delays

A well-structured policy ensures that construction setbacks don’t derail your financial plans or long-term investment goals.

Why Builders Risk Insurance Is a Priority, Not an Afterthought

Too often, property owners wait until a lender requests a policy or a contractor asks for documentation. At Refine Risk, we work with clients who treat risk management as a strategic advantage—not a compliance burden.

The right builders risk insurance policy does more than satisfy a lender. It ensures that your project:

Stays protected from day one through completion
Covers key exposures based on project scope and materials
Includes appropriate extensions for soft costs, ordinance changes, or off-site storage
Aligns with contractual requirements across owners, GCs, and subs
Reflects the scale and intent of your build—not just a generic template

Who Needs Builders Risk Insurance?

Builders risk insurance is essential for any party with a financial interest in a structure during construction. This includes:

Property owners building a single-family home: Whether it’s a tear-down in Scarsdale or new construction in Bridgehampton, the owner needs coverage from foundation to final walkthrough.
Real estate investors renovating multi-family properties: For example, a full-gut renovation of a four-unit brownstone in Brooklyn or a condo conversion in Jersey City.
Developers constructing ground-up commercial buildings: Including mixed-use retail in Westchester, medical office buildouts in White Plains, or warehouse expansions in the Bronx.
Builders and general contractors: Particularly when they retain ownership during construction or are contractually required to carry the policy for risk transfer.
Family offices funding generational builds: Such as estate homes in Greenwich, private compounds in Montauk, or trust-owned real estate projects held in LLC structures.
Business owners constructing new locations: Including franchise expansions, private practices, and regional offices where the owner holds title or is listed on the construction loan.
Lenders requiring project-specific collateral protection: When financing requires evidence of builders risk coverage before disbursement of construction funds.

Each of these clients faces unique exposures, whether structural, contractual, or regulatory.

What to Expect from a Builders Risk Insurance Quote

Every proposal we deliver is customized for your specific project. When you request a builders risk insurance quote, we evaluate:

Project location and timeline
Estimated completed value
Construction type and materials
Contractor roles and risk-sharing structures
Financing and lender requirements
Local permitting, weather, and theft risks

Once we gather this information, we source coverage from top-tier builders risk insurance companies known for strength, responsiveness, and specialization in complex builds.

Builders Risk Insurance Companies We Trust

Refine Risk maintains deep relationships with leading builders risk insurance companies across the U.S., including those with dedicated underwriters for high-value residential and commercial construction. We look for:

Strong financial ratings
Experience with tri-state regional risks
Clear documentation processes
Reasonable turnaround times on claims

Local Insight. National Support.

We’re based in Tuckahoe, NY, and serve clients across New York, New Jersey, and Connecticut. Our team understands the layered risks that come with building in the tri-state region, from NYC zoning complexity to weather-related material delays in Long Island.

We support clients from permit prep through final inspections. From collaborating with lenders, contractors, and attorneys, we are here to ensure your project is protected at every stage.

Begin With a Builders Risk Consultation

Every successful build starts with a clear understanding of risk. Before you break ground, connect with our team to:

Clarify what coverage your project actually needs
Avoid common gaps or limitations in default policies
Compare options from leading builders risk insurance companies
Receive a detailed, actionable builders risk insurance quote

Serving the Tri-State Area Since 2003.

We work with clients across:

New York City
Westchester, Rockland, and Long Island
Northern and Central New Jersey
Fairfield County and Western Connecticut

We offer virtual consultations and document delivery for convenience, along with direct access to a dedicated risk advisor throughout your build.

Want to compare your options?

Click the button below to head to our quotes page where you can enter some basic information to have our team help with your insurance!

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