Builders risk insurance is a type of insurance that covers the new home builder, not the homeowner. This insurance protects the house that’s being built during the construction process, and will cover the builder if there are any incidents of severe weather, windstorms, vandalism, fire, or theft. Contractors insurance like a builders risk insurance policy will typically end once the building process is complete.
If you are a home builder, you should be covered completely on the first day of your build. If you are not, you are liable in many ways. When the materials are delivered to the location, you should be covered.
There are different types of builders risk insurance available depending on the type of job that you’re doing. If you are building a home in a high dollar neighborhood, you might want a different policy than if you’re a small company who builds 4 or 5 homes a year in middle or lower class neighborhoods.