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Builder’s risk insurance is a special type of property insurance that indemnifies against damage to buildings while they are under construction. Builder’s risk coverage protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.

Common law states that any new construction or other improvement to land becomes property of the owner of the land – the title holder – once there has been an “improvement” to the owner’s site. Builder’s risk insurance indemnifies against some of these losses.

Builder’s risk insurance coverage should be purchased by the custom builder or general contractor and may also be purchased by the property owner. Builder’s risk coverage may be necessary to show proof of insurance to comply with local city, county, and Connecticut building codes and is often required as a condition to many contracts.

Buildings are subject to many different risks while under construction. They may catch fire or be damaged by high winds. Builder’s risk insurance typically does not cover perils such as earthquake, flood, or wind in beach zones unless the policy has been specifically set up to do so.

Coverage is typically during construction period only, and it is intended to terminate when the work has been completed and the property is ready for use or occupancy. If you are going to properly setup your policy, coverage should be effective prior to when the materials are delivered to the job site.

Builder’s risk insurance ends upon closing of the sale, occupancy, or the policy expiration date. After builder’s risk coverage expires, due to sale or occupancy, the new owner should take out permanent property insurance on the building such as a homeowner’s policy or a commercial property policy.

Contact Olde Liberty Insurance today to receive a no-obligation, customized quote from some of the most reputable carriers in the state of Connecticut.

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  • Reports will be ordered to properly classify and rate your policy. These reports may include information about your claims and driving history, insurance score, and may include information about current and former members of your household. These reports provide information that may assist in determining your eligibility for insurance and the price you may be charged. Consumer reports may also be used for updates, renewals, or extensions of this insurance. We may also obtain and use a credit-based insurance score. We may use a third party in connection with the development of the insurance score. State privacy laws require that you are notified that personal information may be collected from sources other than yourself. This will include a loss history report showing your personal insurance claims history. Such information, as well as other information collected, may be disclosed in circumstances to third parties without authorization. A right to access and correction exists with respect to all personal information and a written notice will be furnished to you upon request.

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