What Is a Builder's Risk Policy?

Builder's risk insurance, also known as course of construction insurance, is a specific type of insurance for buildings under construction. It is essential for a successful risk management program.

Who Needs a Builder’s Risk Policy?

Any individual or business that has a financial stake in a construction project should have builder’s risk insurance. It offers protection against certain types of property damage to the construction project. In case of a delay due to property damage, it can also cover extra soft costs. These are costs not directly linked to the construction, like lost sales, rental income, additional interest on loans, and real estate taxes.

What is the Cost?

The average cost of this insurance policy is between 1-5% of the project's cost. So, for a project costing $1,000,000, the insurance would range between $10,000 and $50,000.

Erazo Insurance Services LLC works with residential and commercial projects.