A project under construction isn't a finished building, and a standard property policy won't treat it like one. Builders risk covers the structure while it goes up — plus the materials sitting on site, in transit and in temporary storage — for the length of the job.
Written for the job rather than the address, and it ends when the project does. Here's each piece in plain English.
The building itself while work is in progress — the single biggest number on the policy. The limit should equal the completed value of the project, not what's been spent so far.
Lumber, fixtures, HVAC and everything else staged at the job waiting to be installed, covered against fire, wind, theft and vandalism while it sits there.
Property being trucked to the job or held at a supplier's yard or temporary storage. Both usually carry their own sub-limits, worth checking against how you actually stage a job.
The money a delay costs you that isn't lumber: lost rent, extra loan interest, re-pulled permits, additional design fees. Optional on most forms and commonly overlooked.
Clearing the site after a covered loss so the crew can start again. Normally a percentage of the main limit rather than a separate pot of money.
The general contractor, the owner and often the lender all have a stake. Getting every interested party named up front avoids an argument at claim time.
Written for the expected length of the project. Jobs run long, so ask about an extension before the term lapses — coverage that expires mid-build is the classic builders risk failure.
Ground-up construction and a renovation to an existing occupied building rate differently, and the existing structure may need to stay on a separate property policy.
Answered the way we'd answer them on the phone.
Either can, and the construction contract usually says which. What matters more is that everyone with a financial interest — owner, general contractor and lender — is named on the policy. If the contract is silent, we'll read it with you before it's issued.
The completed value of the project, including materials and labor, not the amount spent to date. Underinsuring the completed value can trigger a coinsurance penalty on a partial loss, which is a painful way to learn the limit was short.
It can be. The policy is written for a set term and coverage stops when it expires, whether or not the roof is on. Tell us early and we'll arrange an extension — routine before expiry, and much harder after.
Usually not on its own. Builders risk covers the work being done; the existing structure generally stays on the owner's property policy. On a gut renovation the line between the two matters, so both should be reviewed together.
Send us the project address, the completed value, the start date and how long you expect it to run. A licensed NY agent will shop it and confirm who needs to be named before the first delivery lands on site.