Builders Risk Insurance in Rocky Point, NY

Construction projects, whether residential or commercial, come with a unique set of risks that can jeopardize timelines, budgets and investments. From unexpected weather events to theft or vandalism, the potential for loss during the building phase is significant. That’s where builders risk insurance can come into play.

What Is the Meaning of Builders Risk? man walking on construction site

Builders risk insurance can help financially cover buildings and structures under construction or renovation. It can help financially protect against damage or loss due to unforeseen events such as fire, theft, vandalism and certain weather-related incidents. This policy typically covers the building materials, fixtures and equipment used in the construction process, whether they are on-site, in transit or temporarily stored elsewhere. Without it, any damage during the building phase could result in significant out-of-pocket expenses and project delays.

What Does Builders Risk Not Cover?

While builders risk insurance offers broad protection, it does not cover everything. Common exclusions include the following:

  • Employee theft
  • Normal wear and tear
  • Mechanical breakdowns
  • Earthquakes and floods
  • Contractor errors (e.g., faulty work, design flaws or poor planning)
  • Tools and equipment

Understanding these exclusions is crucial. Additional policies or endorsements may be necessary to fill these gaps.

What Is an Example of a Builders Risk Claim?

Imagine a scenario where a contractor is building a new office complex. Halfway through the project, a severe thunderstorm causes a portion of the roof to collapse, damaging the interior framing and electrical systems. The damage results in a hefty repair bill and delays the project by two months.

In this case, the contractor files a builders risk claim. The insurance provider investigates the incident, confirms the damage was caused by a covered peril (the storm), and reimburses the contractor for the repair costs and potentially some of the delay-related expenses, depending on the policy terms. This financial support allows the project to continue without significant financial strain.

Who Typically Pays for Builders Risk Insurance?

The responsibility for purchasing builders risk insurance can vary depending on the project and contractual agreements. Typically, one of the following parties pays for the policy:

  • Property owner
  • General contractor
  • Developer

Ultimately, the party responsible for the insurance should be clearly defined in the construction contract to avoid confusion or coverage gaps.

How Much Builders Risk Coverage Do I Need?

For builders risk insurance guidance near you, contact Metro Insurance Agency.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

©2025. All rights reserved. | Powered by Zywave Websites