Who Needs Builders Risk Insurance During A Construction Project?
During construction or major renovation, protecting the structure and materials is an important part of planning. Bixler Insurance works with property owners and contractors who have questions about builders risk insurance and how it fits into a project. We serve clients in New Haven, IN, Fort Wayne, Bluffton, Berne, IN, Geneva, IN, Portland, IN, and surrounding areas, helping them understand coverage options related to construction project insurance and risk management.
This type of coverage is generally considered when a building is under construction, being remodeled, or undergoing structural updates. It focuses on property-related risks during the course of construction rather than liability concerns.
Parties who may need this coverage include:
- Property owners
Owners financing a new build or renovation often have an interest in protecting the structure, materials, and fixtures while work is in progress.
- General contractors
Contractors may be required by contract to carry coverage for damage to the project site during construction.
- Developers and investors
Those overseeing multiple projects often look at builders risk insurance requirements as part of their overall planning.
- Homeowners planning major renovations
Large remodels or additions may create exposures not covered under a standard homeowners policy.
- Lenders or financial institutions
In some cases, lenders request proof of coverage before releasing funds for a construction project.
Coverage needs can vary depending on the project size, timeline, and contractual agreements. Materials stored on-site, partially completed structures, and temporary installations may be part of the exposure. Reviewing contracts early can help clarify who is responsible for arranging coverage and for how long the policy should remain active.
Understanding how this type of construction project insurance works can help reduce uncertainty during a build. Clear communication between owners, contractors, and lenders also plays a role in meeting builders risk insurance requirements and keeping projects moving forward.
Talking with an insurance professional can help align coverage with the specific details of a project and avoid gaps related to timing or responsibility.
Would you like to discuss? Please give us a call, or email us!