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There are some instances when a standard homeowners insurance policy won’t cover your property, such as when you’re building a home from the ground up, or you own a vacant property undergoing renovations. What happens if your property burns to the ground, or incurs another type of serious damage or loss? To protect your under-construction or renovation properties, you’ll need a builder’s risk policy.

What is a builder’s risk policy?

A builder’s risk policy provides insurance coverage for either residential or commercial buildings under construction or renovation. If you’re a homeowner, property investor, builder, or contractor building or remodeling a building, this is the policy you’ll need to protect your financial interest. You can purchase a policy for as short a term as one month, all the way up to a year, depending on how long you think the construction process will take. If the project doesn’t finish in the expected time, you can extend coverage. You can also cancel the policy if the building is finished before the end of the policy term.

Depending on what perils you choose to include, builder’s risk policies cover loss or damage at construction sites, including building materials being used to remodel or complete ground-up construction of a building. You can buy a builder’s risk policy with varying deductibles and levels of coverage—your L & M Insurance Group agent can help you decide what policy features are best for you.

What builder’s risk doesn’t cover

Builder’s risk policies do not typically cover liability for accidents or injuries on the construction site that are related to the construction itself. Also, a builder’s risk policy is different from a vacant dwelling policy, which is just what it sounds like: a policy that covers your home or investment property when it is vacant, but not under construction.

L & M Insurance Group has many years of experience helping clients in Brandon, Riverview, Valrico, Gibsonton and surrounding areas choose the right insurance coverage to protect their financial interests. We understand the insurance needs of property investors as well as private individuals, and would love to help you with all your property insurance needs. Please contact us via phone at 813-672-4100 or click here to email us.

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