What Builders Risk Insurance Actually Covers
Builders risk insurance is designed specifically for structures and materials during active construction — not after the project is complete. If a fire, windstorm, theft, or vandalism damages a building while work is still underway, a standard property policy won't respond. Builders risk fills that gap, covering the structure itself along with materials stored on site or in transit to the job.
This is distinct from the completed-operations coverage that sits under your general liability policy. General liability addresses bodily injury and property damage you cause to others. Builders risk addresses physical loss to the project itself while it's still being built. Both have a role — they're not interchangeable.
Coverage typically includes:
- The structure under construction
- Building materials and supplies on site
- Materials in transit to the job location
- Temporary structures such as scaffolding and fencing
- Loss caused by fire, wind, lightning, hail, theft, and vandalism
Built for New Construction and Renovation Projects
Who Needs a Builders Risk Policy?
General Contractors and Builders
If you're managing a ground-up build — residential or commercial — builders risk insurance is the standard way to cover the project during construction. Lenders financing new construction typically require it before work begins. Even when it's not required, leaving a partially built structure uninsured against weather or fire is a risk most contractors can't absorb on their own.
Renovation and Remodel Contractors
Builders risk isn't limited to new construction. If you're doing a significant renovation or remodel — gutting a kitchen, adding an addition, or rehabilitating an older home — the materials and structural work you've completed are exposed to the same risks as a new build. York County's older housing stock means renovation work is common here, and that work deserves the same protection as any ground-up project.
Property Owners Managing Their Own Build
Builders risk coverage isn't exclusively for licensed contractors. Property owners who are acting as their own general contractor on a new home or major renovation can obtain a builders risk policy to cover the project. If you're overseeing the build yourself, we can walk you through what's required and help you find a policy structured for owner-builder projects.
How Builders Risk Insurance Is Priced
Builders risk premiums are calculated differently than most other business insurance policies. Rather than a flat annual rate, the premium is typically set as a percentage of the total completed value of the construction project — often ranging from 1% to 4% depending on the project type, construction materials, location, and coverage terms.
This means a $300,000 residential build and a $900,000 commercial renovation will carry different premiums, and both will be priced based on what the finished structure is worth — not on a fixed schedule. The policy term is also tied to the construction timeline rather than a standard 12-month period.
We explain builders risk pricing clearly before you commit to anything. You'll know what the policy covers, how the premium was calculated, and what happens if the project runs longer than originally scheduled.
Common Questions About Builders Risk Insurance
What does builders risk insurance cover during construction?
Builders risk insurance covers the structure being built and the materials associated with it — including supplies stored on site and materials in transit — against losses from fire, wind, hail, lightning, theft, and vandalism. It applies while the project is actively under construction and typically ends at project completion or when the structure is occupied.Do I need builders risk insurance for a remodel?
Yes, in most cases. If you're completing a significant renovation or remodel, the materials and structural work in progress are exposed to the same risks as new construction. A standard homeowner's or commercial property policy generally won't cover a structure that's under active renovation. A builders risk policy addresses that gap.How is builders risk insurance cost determined?
Builders risk premiums are based on a percentage of the total completed construction value rather than a flat annual rate. The percentage varies depending on project type, location, construction materials, and the coverage terms selected. We'll walk you through the calculation so the pricing makes sense before you decide.Does builders risk insurance cover materials stored off site?
Coverage for materials stored off site or in transit is available but depends on how the policy is written. Some standard builders risk policies include limited off-site materials coverage; others require an endorsement. We review this with every contractor client to make sure materials are covered wherever they are in the supply chain.Is builders risk insurance required by lenders?
Most construction lenders require proof of builders risk coverage before releasing funds for a new build or major renovation. Even when it's not a lender requirement, carrying builders risk is standard practice for contractors who want to avoid absorbing a total loss on a project that isn't yet complete.
Get Builders Risk Coverage Through Mid-Atlantic Insurance Group
We work with contractors, remodelers, and owner-builders across Pennsylvania, Maryland, and the surrounding region. Our independent agency accesses multiple carriers, which means we can match your project to a policy that fits the scope, timeline, and budget — without being locked into one company's options. Whether you're breaking ground on a new build or starting a major renovation, we'll make sure your project is covered before work begins.