Builder’s Risk Insurance, also known in some areas as Course of Construction coverage, is a unique kind of property insurance. It’s a form of insurance, which covers a building is presently being constructed. It can include just the structure, or also the materials on site waiting to be installed or transported to the job site and is insurance that most owners will ask every contractor to carry.
The builder’s risk insurance policy will pay for damages up to the coverage limit. The limit must accurately reflect the total completed value of the structure (all materials and labor costs, excluding land value). The construction budget is the best source for determining the appropriate limit of insurance. Builder’s Risk insurance policies can often be written in terms of the construction project duration.